General Comments Earlier this spring, corn and soybean futures markets became worried about tight old crop supplies that were being eaten into by strong domestic and export demand. It began to appear that that the 31 August corn carryout would be drawn down to a minimal pipeline quantity, and that ending soybean supplies on 31 August would be smaller than previously thought. Old crop supply concerns pushed old crop/new crop futures inverses sharply wider. July/November soybeans moved to about a $1.25 premium for July, and the July/December corn spread reached close to a $1.00 premium for July.Then came USDA's May WASDE. To the market's surprise, USDA left its estimated corn carryout unchanged at 851 million bu instead of lowering it belo...
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.