Agricultural futures traders are aware that futures prices for corn, wheat, soybeans and soy products tend to go down at a much faster rate than they rise. A recent case in point is the first new crop contract month for the 2018 U.S. corn crop, December. Its highest close so far in 2018 was $4.2625 on 23 May. The same contract then finished at $4.0125 yesterday (4 June), a drop of $0.25 or about 6 percent in eight trading days. By historical standards, that may not be a very large price decline during a limited period. However, it is made to seem larger by December corn’s crawling pace of three months to climb from $4.00 to reach its 2018 high close. The rapid decrease of the December corn price has essentially been triggered b...
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.