Yesterday, WPI reported on the forecast for dairy for 2022., noting that this month’s WASDE raised the all-milk price forecast for 2022 to a record high at $25.80/cwt, based on the increase in all dairy product prices except whey. However, we also noted that feed prices have increased more than milk prices, squeezing producer margins. Given the COVID era’s impact on supply chain, labor and other processing costs, processor margin are also squeezed. In 2021, USDA commissioned a study on the production costs for processing dairy production, conducted at the University of Wisconsin. The paper, which was completed in December of 2021, was released in February of this year. The estimated cost of production increased in 3...
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.