General Comments: If there is one word that describes the grain and soy futures market this week, our pick would be lethargic. Volume is very low with price movements that are slow and limited in range. Additional inputs following the 12 October WASDE are almost totally lacking. There is little incentive for noncommercial funds to add to or shrink existing positions, and commercials have no incentive to trade beyond hedging cash transactions. And to the extent that commercials are able to manage risk by offsetting cash sales with cash purchases, they can avoid the futures markets and are likely better off as a result. Overnight trade was again slow and low. December corn traded in about a 1 cent range that could expand only to about 2.5 c...
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.