As the market recovered this year, there has been growth in certain short positions on the part of producers and merchants. This could well suggest that U.S. producers are finding current futures prices are strong enough to generate a positive return to production.According to the U.S. Energy Information Administration’s (EIA’s) latest Short-Term Energy Outlook (STEO), U.S. crude oil production is forecast at 8.6 million barrels/day in 2017 or about 100,000 barrels more than its previous projection. That compares with a forecast of 8.7 million barrels/day for 2016 and actual production of 9.4 million barrels/day in 2015. The latter of course occurred when West Texas Intermediate (WTI) crude oil prices dropped from highs of more than $60/bar...
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.