World Perspectives

Resistance versus Capitulation; Typical Scapegoat; Fix at Hand; Fishy; No Thanks

Resistance versus Capitulation Reaction to the Trump administration’s proposed steel and aluminum tariffs is diverse. The EU says it should be exempt from the duties, and one EU member state representative said that he expects Brussels to skip the WTO and go to retaliation. By contrast, COFCO president Patrick Yu says that a trade war would not be good for the world and that Beijing is encouraging companies to buy U.S. soybeans. Unfortunately for Beijing, the government directing purchases just proves that China is not a market economy. The EU claims that its tariffs are about the same as those employed by the U.S., but Diane James, a member of the European Parliament from the UK, says that the EU operates 13,000 tariffs and 5,000 n...

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feed-grains soy-oilseeds wheat

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The CBOT was higher overnight as the U.S. dollar fell to a three-year low, but the day session saw the major ag market slip lower and end in the red with pressure from macroeconomic markets increasing. In addition to sparking trade wars with nearly every major U.S. trading partner, U.S. Preside...

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May 25 Corn closed at $4.8175/bushel, down $0.005 from yesterday's close.  May 25 Wheat closed at $5.385/bushel, down $0.1025 from yesterday's close.  May 25 Soybeans closed at $10.295/bushel, down $0.07 from yesterday's close.  May 25 Soymeal closed at $292.9/short ton, down $2...

Barriers are Good; Squeezed in the Trade War; Calculating the Impacts; Tax is a Tax

Barriers are Good The issue de jour is tariffs. Donald Trump is vilified by conventionalists for the self-induced wound of raising this single barrier to business. As a businessman, Trump sees a complex web of market barriers. Domestic regulations, domestic taxes, but also foreign tariffs (taxe...

feed-grains soy-oilseeds wheat

Mercosur Regional Analysis

Argentina Macroeconomic Updates Argentina saw a shortened trading week, with no markets last Thursday and Friday. It was also the first week of trading under the new exchange rate regulations, so it took the markets a few days to adjust. Regarding the official exchange rate, it opened on Monday...

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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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