The bull market roars on with corn, soybeans, soyoil, and soymeal all posting fresh contract highs today. Fund buying remains one of the biggest near-term factors driving the rally, but bulls have plenty of fundamental factors justifying the buying spree. The U.S. dollar is trading lower to the benefit of U.S. exporters and even the massive rallies in corn and soybeans have yet to appreciably slow demand for physical U.S. grain. The weather in Argentina and, to a lesser extent Brazil, remains concerning and companies are seemingly continually revising their production forecasts lower ahead of next week’s January WASDE. Open interest continues to rise for the major CBOT commodities, with yesterday’s volume report showing 1...
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.