The coronavirus-driven market rout continued today with global stock markets failing in their attempted recovery and falling sharply again as investor “flight to safety” deepened. For the commodity markets, supply and demand fundamentals haven’t changed substantially due to the virus (at least not yet) and most of this week’s selling is driven by broader investment flows. There is, of course, some concern that a slowdown in the global economy will suppress trade and demand for raw commodities, but such concerns are overblow at present. WPI’s view is that much of the ag commodity weakness is tied back to crude oil performance and broader investment flows. As such, there may be buying opportunities ahead if commo...
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.