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 announced that it will be selling its beef plant in Pasco, Washington, which has an estimated daily slaughter capacity of 2,200 head. The news is a major shock to cattle producers in the region – and to the industry at large – as it came with essentially no warning. The closure of the Joslin, Illinois, facility is much more sudden than most plant closures, which generally require two months’ notice. Tyson told industry sources that...
There was encouraging news over the weekend: the White House may reject the misguided idea on Capitol Hill to ban U.S. diesel exports. What WPI has noted previously was perhaps best put by a Department of Energy report of 2022, under the Biden administration: Petroleum liquids markets are globa...
Key Takeaways: Comparative advantage encourages countries to specialize in goods they can produce at a lower opportunity cost and rely on trade for others. Differences in climate, land, infrastructure, and technology help determine where agricultural commodities can be produced most efficientl...
Beef packer margins improved to $196/head last week, up $20 from the prior week as fed cattle prices declined faster than the Choice cutout. The cutout eased to $375/cwt while fed cattle fell to $221/cwt, modestly widening packer spreads. Margins remain well above year-ago levels as lower cattl...
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.