As the trading week closed out, the soy complex incurred another series of impressive gains largely driven by production uncertainties in South America. The CFTC reports that speculators increased their net long positions in soybeans in the week to 4 January by 5,140 contracts to a total of 85,850 contracts. Supply Analysts have already begun reducing their estimates for Brazilian production (see graph below). If Brazilian consultancy AgRural is correct, Brazil will have the lowest yield since 2015/16. A new official estimate will be issued by Brazil’s Conab on 11 January and by USDA on 12 January. The trade expects USDA to make a modest cut from its current 144 MMT estimate for Brazilian soybeans to 141.6 MMT. They also expect U.S...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
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.