Market analysts over-estimated planted acres ahead of the March Planting Intentions Report and they did it again ahead of the June Acreage Report. The market signal of higher prices was the same for both reporting periods but there were more constraints at the ground level during the latter period. For one, there was suboptimal moisture in some areas, and the cost of inputs had risen. The number of planted acres drops most precipitously when the spring has bad weather, or prices fall dramatically, and the converse would potentially be true in terms of increases in planted acres, though that is not a perfect correlation. This year, plantings west of the Rocky Mountains all fell sharply, though corn and soybeans are not as important as...
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.