Chicago wheat futures have been climbing for the past few weeks based on still somewhat speculative supply losses due to adverse weather conditions and solid demand. Futures literally look forward while USDA’s strength is in the present and past. Historically, the stocks to use ratio and season average price correlate very closely (0.943). However, the recent move higher in wheat prices has reduced correlation by 1.8 percent, at least relative to USDA’s season average projection. We will not have USDA’s final assessment of this year’s wheat production until early 2020, and the agency will continue to make adjustments in its supply/demand balance and consequent pricing outcomes for well more than a year from no...
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...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
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.