World Perspectives
livestock

Livestock Industry Margins

Except for beef packer and feedlot placement margins, cattle and hog industry profits were broadly lower last week with the pork industry seeing the most pronounced weakness. Pork packer margins drifted lower on weaker pork values and despite slightly lower hog purchase costs. Last week’s declines in hog futures sent farrow-to-finish and wean-to-finish hog producer margins sharply lower as forward price expectations fell $4-5/cwt. Forward-looking margins for this week’s farrowing or placements are deeply negative and will likely start to incentivize reduced production. Closeout hog margins dipped from the prior week but remain positive, thanks to reduced feed costs.  In the beef sector, ...

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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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