Big Sales of Soybean Oil Several crushers last week liquidated their long positions on soyoil, which might seem strange considering farmers' grain retention. The liquidation was caused by several crushers (integrated with biodiesel production) holding onto soyoil stocks in case biodiesel demand were to arise. Specifically, there were rumors that Europe plans to buy biodiesel. Argentina's biodiesel industry suffered last year because of the EU's antidumping investigation in addition to the mandate required. Additionally, Spain stopped its purchases of Argentine biodiesel in retaliation against the Argentine government's move to nationalize YPF (formerly controlled by Spanish energy group Repsol).Ultimately, the EU did not purchase Argenti...
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.