Excess Soymeal Driving Chinse Soy Crushers’ Poor Margins While the U.S.-China trade war has caused losses for the U.S. soybean sector (among others) while being a godsend for those in South America, all soybean-producing countries may soon be facing a problem of reduced demand due to the growing African swine flu (AFS) outbreak in China. AFS is causing a sharp decline in soymeal consumption as many hogs and pigs have been killed there to prevent the disease from spreading. Demand for pork has also dropped because of some consumer concerns and bans on transporting swine/pork across provincial lines. The government has also encouraged swine producers to reduce the amount of soymeal in feed formulations from 20 percent to 12 percent, wh...
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.