U.S. cow-calf producers are facing unprecedented economic incentives to expand the beef herd with expected production margins hitting record highs this year. WPI’s models indicate that revenues for the “average” Southern Plains (i.e., Kansas) cow-calf operations are forecast to approach $1,750/cow-unit this year – a new record high and one that tops the 2014 revenue estimates (the prior peak in prices at the bottom of the cattle cycle) by nearly $250. Projected 2024 revenues are 7 percent higher than in 2023 with the increase primarily stemming from the value of calf sales as steer and heifer values are up 30 percent from one year ago. Strong cull cow values are also contributing to revenues as prices hit record high...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
Key Takeaways: Peace at last in the Persian Gulf? Over the weekend, the U.S. announced and Iranian officials confirmed a peace agreement, with formal ratification set for Geneva on 19 June. The announcement means the Strait of Hormuz is set to reopen fully and toll-free within 30 days.&n...
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.