Economists and central bankers gathering this past weekend at the American Economists Association found reasons to be optimistic. The U.S. economy is slowing but odds of a recession are low. Low interest rates and a solid jobs market offset a slowdown in manufacturing. The IMF predicts global economic growth to increase in 2020 and again in 2021, leg by improvements in many emerging markets. In reaction to the growth, raw material prices have been rising and the dollar is at its lowest level since March, a factor that further boosts commodity consumption. GDP growth is much more volatile than major agricultural commodity ending stocks, but there is nonetheless a correlation. GDP growth spurs consumption. If geopolitical volatility does not...
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.