USDA’s latest season-average price forecast was released yesterday, which included a forecast of Price Loss Coverage (PLC) program payments based on the formula model. The big takeaway is that there won’t be PLC payments in 2023/24 for corn, wheat, or soybeans, based on UDSA’s forecast prices of corn at $5.00/bushel, wheat at $7.63/bushel, and soybeans at $12.98/bushel. The PLC program provides payments to farmers who have base acres of covered commodities. The payments are made on a commodity-by-commodity basis when the annual average national market price falls below the “reference price” specified in the farm bill. The payment rate is the difference between the reference price and the market. The formula i...
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.