World Perspectives
feed-grains soy-oilseeds wheat

Early Projections for 2019 Crop Returns Are Dismal

Big Iron, one of the largest farm shows in the country, was held this week in Fargo, ND. There is always a large seminar held for farmers during this show, which covers topics such as market outlook, marketing strategies, updates on the progress of the farm bill, etc. Also included this year was a presentation by a regional farm business management group on projected farm cash flow for 2019. These projections were based on current new crop cash prices for corn, soybeans and wheat in the Red River Valley of the northern Plains. As would be expected with the collapse in those prices, the projections are quite dismal. The table below shows the group’s mid-range yield and land cost estimates.

These production costs are bare returns per...

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feed-grains soy-oilseeds wheat

Summary of Futures

Mar 26 Corn closed at $4.3125/bushel, up $0.0375 from yesterday's close.  Mar 26 Wheat closed at $5.525/bushel, up $0.1525 from yesterday's close.  Mar 26 Soybeans closed at $11.3725/bushel, up $0.1325 from yesterday's close.  Mar 26 Soymeal closed at $307.9/short ton, up $4.9 fr...

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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.

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