The market adage that “big crops grow bigger” means that forecasts typically start out conservative, and a season that starts well typically ends well. The current betting is the opposite: small crops get smaller. The bears will recall that planting progress was unspectacular last year, and yet production surprised to the upside, mostly due to perfect weather. In 2009, the corn crop’s planting pace was 10 percent slower than the year before, but it produced yields that were 7 percent larger. A record 97 percent had been planted by week 20 in 2012 (see graph below), but drought caused the average yield to be substantially lower. All that said and ignoring total planted acres, the size of the corn crop correlates in most ye...
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.