World Perspectives

Inflation and the Value of the U.S. Dollar

The Bureau of Labor Statistics will release the Consumer Price Index (CPI) data tomorrow. The pre-report expectation is for an annual rate of 7.3 percent (compared to 7.8 percent in October) and a November monthly rate of 0.2 percent (compared to a monthly rate of 0.4 percent in October). Last week the Producer Price Index (PPI) came in at 0.3 percent, which was above the 0.2 percent consensus expectation and 7.4 percent for the year. The “core” PPI – excluding ag and energy – rose 0.4 percent in November. The PPI actually declined in July and showed no change in August, which is when energy prices declined before spiking again in September by 0.4 percent.  Which brings up the value of the U.S. dollar. From th...

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Farmland Consolidation

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livestock

Livestock Industry Margins

Beef packer margins reversed sharply to -$17/head from $120/head the prior week, as rising fed cattle prices more than offset a modest decline in the Choice cutout. Fed cattle prices increased $12.92/cwt from the prior week while the cutout slipped $3.24/cwt, compressing gross margins and pushi...

feed-grains soy-oilseeds wheat

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The CBOT markets were surprisingly insulated from a jump in crude oil that started the week. Crude oil futures rallied to $115/brl - their highest levels since the earliest days of the U.S.-Iran war - on rhetoric from the White House that signaled an escalation in the conflict. While the oil he...

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Under the theory of economies of scale, the size of farms, like that of all industries, should increase over time due to improvements in productivity. Farmers themselves understand that the more land they farm, the greater their output and, thus, the larger their potential incomes. Government p...

feed-grains soy-oilseeds wheat

Summary of Futures

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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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