GOOD MORNING, The WASDE’s major takeaway: we have less wheat supply around the world than we previously thought. This kicked off a short-covering rally, and brought new buyers to the table. Less production in Russia (down 3.8 MMT), Canada, Ukraine, Australia (suffering from severe drought), and the EU production lowered by 10.5 MMT. Russia's exports were down 2.5 MMT, Australia down 1.0 MMT, and Ukraine lowered 500 MMT, bringing ideas that the US may become more competitive via the numbers. Additionally, US wheat ending stocks were lower as well. Slightly offsetting this dynamic was increased production in each class of wheat. The all wheat total was raised 1.4 bpa to 50.0 bpa, with the largest in...
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.