Global sugar prices are up 55 percent over a year ago due to a weather shortened Brazilian cane crop. The price is still 23 percent below the peak it hit in 2011/12, but high enough to cause discomfort to users. By contrast, the U.S. sugar market is stable due to the government floor price. The U.S. sugar price averages 64 percent higher than world prices but in years like this one, the two come close with just a 32 percent premium in the American market. Automotive fuel distributor in Brazil have asked the government to reduce the ethanol blend requirement from 27 percent to 18 percent due to both the higher price for sugar and corn as feedstocks. It has also heightened the interest by U.S. ethanol producers to have the Brazilian im...
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.