The flood of easy money from the U.S. Federal Reserve intended to prop up the economy in the face of COVID-19 should be inflationary. The Fed has tipped its hand by expressing a desire for inflation above its previous 2 percent cap. Food and energy are typically treated separately than core inflation since they are inherently more volatile. Nonetheless, inflation should be good for commodities since they concurrently store value. Commodity futures have thus far been bearish with the inflation rate so far this year for unprocessed foodstuffs and feedstuffs averaging -6.7 percent. By contrast, the 20-year average is 3.2 percent for this category. The COVID-related pantry stockpiling drove the cost of finished consumer foods up 2.3 perc...
What You Need to Know Today: President Trump claimed the ceasefire between the U.S. and Iran was over, as both sides accused one another of violating the terms of the agreement. Commercial vessels are increasingly steering clear of the Strait of Hormuz as security risks escalate following Iran...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
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.