World Perspectives

Dollar Drives U.S. Exports

Chicago futures reacted today to a record spread between the value of the dollar and the Brazilian real, each at three-year highs and lows, respectively. The response was rational since currency valuations strongly influence the competitiveness of bulk commodities and the U.S. and Brazil produce many of the same agricultural products.  The graph shows the dollar/agricultural export relationship on an annualized basis. Currency valuations are in constant flux as are the supply/demand balances for each supplying country. Consequently, the current situation is not necessarily determinative of the rest of the year. Under normal circumstances, a major purchasing country like China would be heavily influenced by currency valuations but it a...

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livestock

Livestock Industry Margins

Beef packer margins reversed sharply lower last week, swinging back into negative territory after six straight weeks of positive returns. Margins fell $145/head to –$75 as fed cattle prices rebounded $7/cwt (live basis), while the Choice cutout slipped nearly $7/cwt. The rapid compression...

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From WPI Consulting

Infrastructure investment due diligence

On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.

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