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...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
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.