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: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
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.