Lower commodity prices in the U.S. will help export market sales, but the catalyst will be the way monetary policy unfolds.In the last two policy meetings of the Federal Reserve Board, the Fed cut bond purchases back to a pace of about $65 billion per month. This is a reduction of about $10 billion in monthly purchases for two straight months from the $85 billion pace that was in place. It has also started a long-awaited taper of the easy monetary policy that the Fed has been pursuing for the past few years. The question is, how long and how steep will this taper be? The bond purchases were intended to drive down loan rates to stimulate consumer spending and growth and have been paired with the near zero federal fund interest rates since 20...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
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.