Noncommercial managed funds have held a large short position in wheat futures, mainly Chicago (SRW), in what seems like forever. The fund long position in wheat was estimated to be about 125,000 contracts at last count. Being short wheat futures for the long haul has been easy to rationalize. World wheat production has set a new record in each of the last several years and has grown notably faster than world use, which has resulted in ending world wheat stocks having their own string of new records. USDA’s latest estimate for those 2017/18 ending stocks is 268.4 MMT or 36 percent of use. U.S. wheat production has decreased more than 25 percent in the last three years, but estimated ending U.S. wheat stocks are still around the 1-billi...
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.