Price is the most efficient signal to producers on whether to grow or reduce output of a commodity. However, price signals become distorted in agriculture due to policy interventions. Consequently, looking at supply/demand balances are another tool to weigh relative food security. USDA data on the global MY 2020/21 supply situation offers some expected results. Excluding available carryover stocks, consumption is exceeding production in oilseeds and corn. Canola prices are currently reflecting the larger deficit in rapeseed, and soybeans are not far behind. Wheat is in larger abundance, which is why prices are having trouble pushing any higher. Beef may have the second largest surplus in this grouping of commodities, but the cattle cycle i...
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.