There is no doubt that China's move is bearish for commodities. Putting the devaluation in context, however, China has essentially pegged its currency to the U.S. dollar for years with a creeping exchange rate that has appreciated since 2010.China's devaluation of the yuan, which was reported earlier this week, will ultimately have an impact on all commodity prices (not only agricultural) due to its sheer population size and the volume of purchases it makes in the global market. One particular commodity affected will be soybeans as China is the world's largest purchaser. As noted, Chinese exports have faced a steep decline, and part of the rationale behind the devaluation is to make them more competitive on the global market.Over the past y...
What You Need to Know Today: A third U.S. border crossing (Columbus, New Mexico) has reopened to Mexican cattle imports following nearly two years of restrictions related to New World screwworm. The reopening could gradually improve feeder cattle availability, although more than 60 confi...
Yesterday, the USDA’s Agricultural Marketing Service (AMS) released a new report of negotiated cash purchases of cattle under the mandatory price report. The report included Colorado, New Mexico, Oklahoma, Texas, and Kansas. The goal of the report was to solve the confidentiality issues e...
Key Takeaways: U.S. soybean crushing began in 1911 and saw its most rapid expansion during the 1930s amid the broader agricultural and technology revolutions of the time. After peaking in the early 2000s, the soybean crushing industry went through a downturn as poor crush margins forced...
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.