Earlier this week, we were asked why grain and soy futures markets do not seem to be taking the lack of rainfall and resulting dryness in portions of Brazil and Argentina very seriously, especially with typical La Nina weather conditions likely to acerbate the situation in the weeks ahead. Our reply was that they do not see a measurable problem – at least not yet. That is an overly simple answer to a question about a very complex situation, but it did prompt us to think about the current state of play regarding South American weather. There are some things that should be considered in a discussion of markets, the current weather situation in Brazil and Argentina, and the potential impact from La Nina. Among them are the following:...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Key Takeaways: Consumer spending is a key driver of the U.S. economy, and the latest retail sales data indicate that spending remains robust despite inflation. In September, total retail and food service sales rose more than 6 percent year-over-year, with food service spending up 7 percent and...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
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.