Part of China’s October buying burst can be attributed to compensating for the slow pace of its new crop 2015/16 soybeans purchases during prior months. No doubt, the low soybean prices that prevailed during much of October attracted Chinese buyers, but there was another important factor.In discussions about global agricultural markets, the words China and soybeans have become so attached that there is hardly a space between them. That country dominates world soybean trade as an importer in the same fashion as the U.S. used to do so as an exporter. Although still very important to soybean trade, the U.S. has lost its preeminence to South American soybean exporters with Brazil now in the number one position.According to USDA’s latest estimat...
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...