There were lots of large worries in the big picture but not so much in agriculture today as it carried on in a mostly bullish affair. The macro markets are supposedly concerned about the rising cases of COVID-19, the lack of an economic stimulus package and perhaps threats from Beijing. The agricultural commodity markets remained focused on supply and demand, the latter of which is well evidenced. In fact, bullishness in commodities attracts cash seeking great yield and thus open interest is pressured upward. Middle income countries are purchasing to stockpile in case supply chains break again under the coronavirus. It is reported that Chinese consumer purchasing during Golden Week was stronger than expected. China says its corn production...
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.
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...