We recall commenting a short while ago that the fundamental outlook for corn and corn prices was relentlessly bearish. We cited a very large U.S. corn crop for the 2020/21 crop cycle that would push U.S. corn stocks to a burdensome level. Moreover, lagging domestic feed demand, stagnant ethanol production and aggressive export pricing by competing exporters with large corn stocks of their own would push U.S. corn stocks to the highest level in many years. Fund managers obviously held the same view as they built up a huge short position of over 300,000 contracts of CME corn futures. What a difference a day makes! Or more specifically, what a difference USDA reports can make. The planted acreage estimates and 1 June quarter...
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.