The U.S. dollar was already at a two-year high when President-Elect Donald Trump announced he would impose tariffs on Canada and Mexico over drugs and immigration. The Canadian dollar was at a four year low against the dollar and fell further. The peso also fell and is now at its weakest in over two years. Import restrictions promise to inflate U.S. prices and thus spur further Fed interest rate hikes, causing the dollar to appreciate further. But a strong dollar reduces the competitiveness of U.S. agricultural commodity exports. There is a moderate inverse correlation between U.S. farm exports and the real annual agricultural trade-weighted exchange rate of the dollar. The correlation can be better or worse depending on the commodity...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
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.