Shifting trade flows for major agricultural commodities are usually directed by prices and comparative values. When it comes to agricultural trade, it has been said that the direction toward the highest prices is always downhill. It is hard to argue with this truism. In an ideal world, grain will move from where it is in surplus (cheapest) to wherever it is in short supply (highest priced). To prove the point, there have been a number of examples when uncommon comparative values have led to unusual trade flows for major agricultural commodities in recent years.We would contend that the price relationships that have led to most of the unusual trade flows recently are actually rooted in weather. More particularly, they have been the result...
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.