World Perspectives
feed-grains soy-oilseeds wheat

Friday Thoughts

Thursday's USDA reports were bearish, and corn took the brunt of the bearish action closing down the 40-cent limit. Corn stocks were larger than expected, although the current marketing year ending stocks are still tight. Winter wheat planted acres were larger than expected. Soybean demand was reduced again. Here are some additional thoughts.1. Hard red winter wheat acres are projected to increase about 1.5 million acres from 2011 acres. Planted acres in Texas and Oklahoma alone are projected to increase by a million acres, with North Dakota up 300,000 acres. There are several reasons for the increases:

The initial crop revenue insurance price guarantee for 2012 HRW is $8.72 compared to $7.14 last year. KC July futures are now below $...

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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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