China to Consolidate State-Owned Soy Crushing Firms Bloomberg reported today that the Chinese government plans to force two state-owned agricultural firms to consolidate many of their assets. The plan calls for COFCO to incrementally take over the trading and oilseed processing assets of Sinograin, which is in charge of the country’s grain reserves. The domestic oilseed processing plants currently controlled by COFCO have annual capacity of 21.8 MMT, substantially greater than that of second place Wilmar. That will expand to at least 28.3 MMT once it is combined with Sinograin’s approximate 6.5 MMT capacity, which will make COFCO the largest oilseed processor in the country. Its crush in 2018 and that of Sinograin totaled 15.9...
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...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...
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.