Soybeans Brazil’s market was active last week, especially for spot positions as China was paying 91F FOB or 192F CNF for December shipment. At the same time, the U.S. Gulf was trading in the low 180’s basis January futures CNF China for the same position. This 10-cent spread represents the quality difference between the U.S. and Brazil, although the spread often trades lower and around 5 cents/bushel. The problem in determining the competitiveness between the U.S. and Brazil is that U.S. soybeans face multiple hurdles entering China. Chinese buyers can only purchase them if they can secure tax-free import licenses. Reports suggest those licenses are being released to crushing companies, though it’s unclear wh...
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.