Markets were called to open lower based on macro weakness and rain in the forecast for the U.S. Plains and parts of Russia. That outlook held true but selling in wheat quickly accelerated and kept corn trade muted. Wheat triggered sell-stops on its downside move and funds were net sellers for the day. The soy complex, however, shrugged off the grains’ weakness (helped, in part, by bear corn or wheat vs. soybean spreads) and climbed higher. Global grain trading firms are increasingly worried about farmers defaulting on forward contracts for the 2020/21 crop. As noted in more detail in this week’s MERCOSUR Regional Analysis and European Market Analysis from WPI, firms are especially concerned about Argentine and Ukrainian f...
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.