China’s economic growth and now the trade war have rewritten the demand scenario much as the Black Sea region has rewritten the supply side. The Russians have prided themselves on the latter, and a new announcement that at first sounds like a doubling down is a reasonable ambition after further review. The Russian agriculture ministry announced a “proposed” $70 billion investment plan that would boost its grain production to as high as 150.3 MMT by 2035 in an "optimistic scenario." The recent OECD/FAO 10-year forecast predicts surplus crops and low prices, which makes the Russian plan appear threatening on its surface. However, based on trend line growth, the Russians should meet their target and could do so earlier than...
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.