In January 1980, President Carter decided to punish Russia for invading Afghanistan. That action left U.S. grain companies holding sales on the books to Russia for billions of bushels of wheat and corn that they could not ship and had already purchased from farmers. President Carter made all of those contracts worthless with a stroke of the pen. The immediate and correct response from grain companies was to pull all of their cash bids to those farmers. They had no choice with no place to go with another single bushel. This embargo followed six or seven years of enthusiasm about U.S. export potential based on the initial grain sales to Russia, which prompted the unprecedented expansion of capacity at virtually every U.S. export range. Those...
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...