Last week’s USDA Quarterly Stocks report revealed that farmers are holding 36 percent more corn in on-farm storage than a year earlier. One rule of thumb is for farmers to calculate their break-even point and then market their crop over the marketing year. The old calculus, before South America became a counter-cyclical supplier, was for prices to be lowest at the start of the marketing year and then rise as supplies are depleted. That model is clearly discredited as corn prices now decline in the last few weeks of the marketing year. Farmers could try to continue holding on to their stocks, awaiting and hoping the market will eventually add a weather premium. Many larger farms are well capitalized for such a strategy. Bu...
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.