Corn Flat prices are low and are even lower for deferred positions. Grain sales are liquidated in Argentine pesos at the official exchange rate of about 65 ARS/USD and the only way to buy back U.S. dollars is on the black market at 120 ARS/USD. Staying long Argentine pesos seems crazy with the current inflation rate, and even crazier knowing that inflation is expected to increase substantially in the future as the country has no access to credit and the government is printing money to ease the economic situation. Given the currency situation, and the fact they have already sold a large volume of the corn crop, farmers have little reason to keep selling. There has been a large reduction over the past two weeks in the daily volume of...
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.