World barley carryover stocks are forecast at 16.2 MMT in 2022/23, which would be the lowest since 1983/84 when the global population was 40 percent smaller than it is today. This historic tightness in barley availability is pulling U.S. barley prices higher, but not as much as would ordinarily be expected. In fact, the correlation of U.S. barley prices to global supply and demand is quite low. This is because the U.S. is a very minor participant in the global barley market. Only about 7 percent of U.S. production is exported, and that contributes a tiny one-half percent to the globally traded supply. This is in part because U.S. farmers find other crops to be more valuable in terms of net returns. This despite the higher loan rate for bar...
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.