Surplus corn stocks are tightening, and prices are rising, which should ration demand from users such as the livestock sector. However, looking back at the last bull market when corn prices rallied to $8.00/bushel, there was not an appreciable decline in pork and poultry production. Pork production is lower today due to African Swine Fever and poultry production is advancing despite higher prices. Margins will be cut unless consumers continue to show a willingness to pay higher prices. At this juncture, the U.S. chicken margin is pegged at $0.26/pound, which is up week on week and substantially higher than a year ago. Chickens slaughtered and pounds produced continue to rise despite higher feed costs. There are similar strong numbers...
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.