World Perspectives

Length of Commodities Boom

There are an increasing number of reports citing the potential for the recent jump in commodities prices to be more than just a short-term dynamic. Masayuki Noumi of Mizuho Bank is quoted saying, "Prices will get stuck at high levels as the balance of supply and demand is tightening." However, most such comments are focused on a few industrial commodities like copper and petroleum. The price of copper is up 70 percent from a year ago and the value of petroleum and corn have doubled. However, producing metals and oil require long-term investments that have declined whereas a surplus of corn can be just one crop away.  Indices such as the Bloomberg Commodity Index are adjusted annually to better reflect underlying changes. Bloomberg cla...

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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.

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