Argentina Argentina’s new government took office last week and both Argentine bonds and equity prices have rebounded and the peso has firmed. The new government is planning on passing through congress an economic, food and sanitary emergency act that will give the president power to increase taxes by decree. It seems the (somewhat obvious) goal is to increase the export taxes on agricultural, mining, and oil products to obtain (according to government calculations) about $2 billion annually. Export taxes are the only way for the new government to raise revenues without printing money (as the new administration has stated they will avoid), given the small central bank reserves and no access to international credit. As published...
Key Takeaways: Dry bulk markets remain mixed with Capesize vessels seeing continued pressure from weaker demand while fixtures and rate strength gradually increases towards the smaller vessel classes. Tanker markets are pulling back from their recent highs as tonnage moves out of the Mid...
Inflation is back in the driver’s seat, and agriculture is getting pulled in two directions. A stronger dollar is pressuring grains despite fresh Chinese buying, while renewed Middle East attacks lift crude oil. Higher energy prices can support commodities, but they also raise expenses an...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.