Traders must strive to decipher whether today's unexpectedly bullish price action was an upward head fake in a further downward market or the "real McCoy" of a solid bottom from which prices will start to work higher for a substantial time.Yesterday's indecisive close in December Chicago wheat seemed to be the tipping point that enabled it to obtain the leadership position in taking grain contracts higher today. The tug-of-war in trading dynamics, discussed in yesterday's market commentary, is primarily credited with this abrupt upward momentum in wheat. It was not export demand because only 37 percent of total U.S. wheat export sales commitments have been completed so far this season against a normal five-year pace of 45 percent, and the s...
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.