The surprise in the March WASDE was USDA’s aggressive increase in estimated demand for U.S. corn during the second half of the 2017/18 crop year, raising that for exports by an eye-catching 175 million bushels to 2.225 billion bushels. It also boosted its estimate of corn used for ethanol by 50 million bushels to 5.575 billion bushels. These changes increased the total estimated demand for U.S. corn in 2017/18 to a record 14.820 billion bushels. It was the nearly 9 percent jump in estimated corn exports that captured the most attention, which could likely be the biggest such increase ever in a March WASDE. The new number drew immediate skepticism from many observers who have seen U.S. corn export sales and shipments lag badly since t...
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...
From WPI Consulting
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.