Berry Marttin at Rabobank notes that agricultural commodity prices have risen 28 percent over the past year and are 40 percent above pre-pandemic levels. Low stocks, ongoing production concerns, expensive inputs and strong consumer demand means that prices are not going to meaningfully decline anytime soon. However, the price increases in 2022 are unlikely to match those of 2021, which is why investors rebalance their portfolios each year. For example, soybeans rose 1 percent in value in 2021 but La Niña will dent supplies in 2022, which has prompted funds to recently double their long positions. Supplies of products like coffee and cocoa may stay tight but December 2022 lean hog futures are priced at a 10.5 percent discount t...
What You Need to Know Today: Markets got a surprise with a corn yield of 181.2 bushels/acre in the October WASDE, above the average estimate of 177.6 bushels/acre and up from USDA’s September estimate of 178.5 bushels/acre. Although stronger demand is expected to absorb some of the addit...
Key Takeaways: On Friday afternoon, President Trump announced that Russia will “immediately supply over 300,000 Tons of Diesel Fuel” to the United States. The deal, typical of this administration, is light on details but promises an additional 500,000 tons in November and 1 m...
The USDA has lowered its 2026 red meat production forecasts slightly while forecasting a slight increase in broiler production. Beef is now projected at 24.802 billion pounds, 75 million pounds less than in September. Cow slaughter is expected to be up; however, this will be offset by lower ste...
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.