Euractiv reports that 30 percent of the agricultural exporters in Albania have gone bankrupt. The cause? The rapid appreciation of the national currency, the lev versus the euro zone where much of the production is sold. U.S. agricultural exporters understand the pain. The U.S. dollar appreciated 23 percent between 2021 and 2022. Although this year it has zigzagged across both sides of unchanged, it remains well above lows hit back in 2020. Exchange rates are far more impactful to bulk commodity products than it is to value added goods. Now things could get worse. Analysts say the dollar has strengthened an average of 1.2 percent during September in each of the past six years. The reasoning involves quarter-end buying, but also a view that...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
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...
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.