A Beef with Beef Some U.S. senators are demanding that the Justice Department and USDA investigate why the spread between the cash and futures markets for cattle has become so wide. Instead of an investigation they could all just read WPI analysts Matt Herrington and Dave Juday as they have explained the situation in these markets. Moreover, since the delivery period on the April futures contract starts this Friday, the current $14/cwt difference will be cleared up faster than any government investigation. As Matt explains it, the whole bottleneck in the beef supply chain is the packing plant. One cannot run more head of cattle through that process than can be safely handled. The demand for beef spiked with consumer hording, forcing near-t...
Key Takeaways: Dry bulk markets remain mixed with Capesize vessels seeing continued pressure from weaker demand while fixtures and rate strength gradually increases towards the smaller vessel classes. Tanker markets are pulling back from their recent highs as tonnage moves out of the Mid...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
Key Takeaways: Texas illustrates the assumptions underlying the 2025 FMMO reform; Idaho exposes their limitations. The Southwest order blend (roughly 27 percent Class I, 32 percent Class III and 31 percent Class IV) exposes Texas producers to every lever USDA adjusted, with a near-neutral proj...
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.