The CBOT rallied sharply again on Wednesday as tensions continue to escalate in Ukraine. Moreover, weather forecasts show little improvement for Brazil, Argentina, and the U.S. Plains, which continues to threaten supply expectations. Funds were aggressive net buyers for the day, though signs of profit taking are developing in soyoil. The big question in the ag markets right now – especially wheat – is how long the ongoing rally will last and how high prices will rise. Given the extreme and politically driven nature of the rally (the latter fact making forecasts largely impossible), one can only say the answers are essentially unknowable. WPI has heard or read several analysis articles recently indicating that markets are...
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...