World Perspectives

More Money, More Problems

USDA Secretary Sonny Perdue announced that his agency was “authorized” to make the second round of 2019 Market Facilitation Program (MFP) payments. The program set aside $14.5 billion to be made in three tranches. So far, $6.7 billion has been sent out under the 2019 version of MFP, with the balance to be reserved “if needed.” This second round would come in December, absent a deal with China, or even depending on the timing and terms of a deal with China, a potential third round could come in January. This is in addition to the $8.6 billion spent on MFP in 2018. Also, this week House Agriculture Committee chairman Collin Peterson (D-Minnesota) outlined in a letter to Perdue the shortcomings of MFP. Most of the iss...

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Not an Orphan Crop

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CFTC COT Report Analysis

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Market Commentary: Black Sea Instability and Trade War Influences

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Not an Orphan Crop

Sorghum marketers often characterize their commodity as an ancient grain that is drought tolerant. They deflect comments that it is an orphan crop, grown locally for local consumption. They may agree it is under-utilized. In fact, a slightly higher share (16%) of world sorghum production is exp...

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livestock

Cattle on Feed Report

USDA released the monthly Cattle on Feed report today. Once again, placements surprised to the upside compared to pre-report analysts’ consensus expectations. The total cattle on feed inventory was 11.986 million head, which was slightly above last year’s 11.956 million head. Total feedlot inve...

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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.

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