The big news of the week is USDA’s Prospective Plantings report showing farmers plan to sow more acres to soybean than to corn. If that outcome is realized, it will only be the third time this has occurred in modern U.S. farming history. The long-term dominance is why it is known as King Corn. The fact that fertilizer is now expensive and historically comprises three times the share of production cost in corn versus soybeans is the driver of this man bites dog tale. USDA’s report caused oilseed values to temporarily recede worldwide, but the bias is that farmers will plant more corn than they are contemplating today. The problem is that there is very little extra land to expand overall. The first quarter rally in commodit...
Beef packer margins improved $86/head last week to $174/head as sharply lower fed cattle prices more than offset weakness in wholesale beef values. Live cattle prices fell $8.30/cwt to $215.43/cwt, while the Choice cutout declined $4.63/cwt to $361.15/cwt. Margins have recovered substantially f...
Key Takeaways: Alabama and Louisiana have requested partial waivers of 2027 Renewable Fuel Standard (RFS) requirements, arguing that rising compliance costs are contributing to higher fuel prices and economic hardship. Louisiana Governor Jeff Landry is encouraging neighboring states to join th...
Congress is back in session for the lame-duck period, which is beginning with several contentious issues, including the farm bill, a federal funding deadline, energy legislation, and impeachment proceedings against Pete Hegseth, the Secretary of War. Emblematic of the political uncertainty, the...
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.