The COVID19 outbreak is like a pinball bouncing from sector to sector of the economy. In agriculture, for example, with shutdowns in place, transportation energy use is down, which has reduced ethanol demand, which in turn has reduced the production of DDGS, which in turn is creating a new puzzle for feed formulations with high inclusion rates of DDGS, such as cattle, dairy and to a lesser extent hogs. With more corn, and less DDGS, feed formulas are going to have to adjust back to the old school days before ethanol co-products were so prevalent. Generally, that is good for soymeal. That’s an interesting twist after today’s planting reports came out above expectations on corn and below on soybean planting. Tomorrow...
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.