Standard commodity analysts may soon adjust their stories to proclaim, "Production will be large but demand is even larger!" Similar market dialog occurred soon after a bumper crop in 1994. General Comments Today's trading was the normal activity of lining up positions according to expectations prior to a major USDA report. It is those report expectations, particularly for corn, that should be addressed prior to Monday's reports. The average of analysts' estimates seems to be for an increase in U.S. corn acreage that is slightly larger than was specified in the 31 March Prospective Plantings Report. Such assumptions may be influenced by the fact that while the planting pace of U.S. corn started off slower than normal for a few weeks, it e...
What You Need to Know Today: Oil prices surged today following reports of tanker attacks off the coast of Saudi Arabia by Houthi rebels and renewed U.S. threats to escalate military strikes against Iran, heightening concerns over potential disruptions to Middle East energy supplies. Brent crud...
Key Takeaways: The latest UN data shows solid progress reducing global hunger and food insecurity. The geography of hunger-affected people has shifted substantially, however, and Africa is now the most affected region. To understand why hunger patterns have shifted and what policy option...
USDA’s monthly cattle on feed report for 1 July will be released tomorrow. Analysts’ pre-report consensus estimates are for the total inventory on feed to be 102.2 percent of last year. Those estimates imply an on-feed inventory of 11.327 million head. If accurate, that would be the...
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.