This week’s USDA WASDE report was a blip on the screen compared with the intense focus and disruption of Russia warring on Ukraine. Due to the scale of these two countries in global agriculture, the war has caused markets themselves to explode. Early in the war one European analytical firm predicted markets would be disrupted for a month, but it now looks more like years. Primary impact was on wheat and corn, but oilseeds have not been immune to the impact. The loss of Black Sea sunflower oil prompted other markets like Indonesia to restrict their vegetable oil exports in order to protect domestic consumers. The value of soybeans has risen just 1.9 percent since the start of the war, but soyoil is up 7.8 percent in value. The...
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.