General Comments The gloom that has enveloped the eurozone in recent weeks spread further and deeper today. The Greek situation is on hold until after the 17 June election, which is seen as a referendum on the euro. Instead, Spain is becoming the major problem. Spain is in recession with unemployment nearing 25 percent. Its banking sector is shaky, and the fourth largest bank, Bankia, is asking the government for $24 billion to bolster it. The Spanish government has agreed to provide the money, and it will issue bonds to come up with the funds. The problem with that plan is that interest on Spanish 10-year notes rose to 6.67 percent today. That cost of financing its debt is seen as untenable. The spread between Spanish and German 10-year...
What You Need to Know Today: Cattle futures extended their sharp selloff Friday as weakening cash cattle prices, deteriorating feedlot profitability, and reduced packer demand continued to weigh on the market. The inability of futures to sustain a rally following last week's bullish Cattle on...
As predicted, the Federal Reserve held rates steady at the last meeting before the midterm elections, likely in part because of the election (see WPI 19 October and 22 September). The decision comes at the tail end of a midterm election cycle that has been marked by the two parties campaigning...
Key Takeaways: WPI’s new EU rapeseed crushing margin models point to weaker processing returns over the next four months due to higher rapeseed procurement costs and weaker product values. Statistical forecasts call for German crushing margins to decline from €181/MT to €...
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.