These are the kind of times that show why grain farming is such a risky business. After several years of grain and soy prices being pressured by very big crops and burdensome supplies both in the U.S. and globally, the 2019/20 crop cycle has seen farmers buffeted by the impact of excessive precipitation and flooding that delayed spring planting by two to four weeks in many cases. As an example of weather risk to an extreme, wet conditions resulted in a large amount of farmland that simply did not get planted. Grain and soy markets staged an impressive rally based on the big spring planting problems. Estimates are that U.S. farmers were unable to plant more than 19 million acres of cropland, an unprecedented amount. FSA data shows that 11.2...
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.