Falling feeder cattle prices, good pasture conditions, and tightening feedlot margins are working to reduce the number of feeder cattle entering feedlots. Feeder cattle receipts in June totaled 898,000 head, just 84 percent of June 2018 receipts and near the lowest in seven years. The CME Feeder Cattle Index is down 9 percent YTD and is 7 percent lower than this time last year. The lower prices are encouraging owners of feeder cattle outside of feedlots to retain ownership, rather than sell to feedlots. Additionally, feedlots’ recent trend of placing heavier cattle on feed is encouraging cow-calf and stocker operations to keep animals on pasture. While mother nature has punished farmers this year, cow-calf and stocker operations have...
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.