Open interest is rising in commodities and Goldman Sachs says that with inflation likely to return, the outlook is bullish commodities. While agriculture is hot right now, metals and energy will eventually take over. This ignores the real supply/demand situation in agriculture. China says it is only buying 7 MMT of corn but has purchased 10 MMT, and some believe it could go as high as 27 MMT. The difference between 7 and 27 is approximately $3.2 billion. There is also the risk of over-stoking commodity prices. At this juncture, end-users are showing they will pay the higher prices and the lower end of trading ranges is moving higher. But eventually this all peaks and it is back to pullbacks. This morning’s USDA Export Sa...
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.