Goldman Sachs forecasts that its commodity index will earn 6 percent over the coming 12-month period. That may be a welcome prediction, or one brushed off as unserious. After all, those investing in commodities over the past decade have certainly not found them rewarding. But Jason Zweig of the Wall Street Journal noted in a recent article that money can be made in commodities, but only by the most patient of investors. Zweig cites analysis by SummerHaven Investment Management LLC, which reviewed futures contracts over the past nearly 150 years and found they outperformed cash and inflation by 5.2 percent. That is just behind the average 5.5 percent earned by stocks over the past 118 years. The narrow difference is surprising given t...
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.