World Perspectives

Latest Economic Data’s Relevance to Farm Economy Outlook

The Federal Reserve cut interest rates by 25 basis points this week, for the third time in a row.  The new target for the federal funds rate is now 1.5 to 1.75 percent, which was what the equity markets were hoping for.   Both the S&P 500 and Nasdaq indexes hit intraday records today, catalyzed by the October jobs and payroll report released this morning. Payrolls contracted in October but not as much as in previous months’ reports, nor nearly as much as the pre-report expectations. Non-farm payroll increased 128,000 in October; the pre-report expectation was 85,000. This increase was despite the GM strike that took 42,000 jobs off the October monthly report.   Probably more important, however, was the c...

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Not an Orphan Crop

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CFTC COT Report Analysis

Once again, the major finding of Friday’s CFTC report is that funds still remain solidly bullish corn and added another 7 percent to their long position in that market. That was particularly impressive as the week ending 19 November (the reporting deadline for the CFTC report) included days wit...

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Market Commentary: Black Sea Instability and Trade War Influences

There were some jitters this week as Russia and Ukraine stepped up assaults ahead of what may become talks to end the conflict. Alongside concerns about a kinetic war is the uncertainty around the incoming Trump Administration’s aggressions in trade policy.It should be noted that geopolitical u...

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Not an Orphan Crop

Sorghum marketers often characterize their commodity as an ancient grain that is drought tolerant. They deflect comments that it is an orphan crop, grown locally for local consumption. They may agree it is under-utilized. In fact, a slightly higher share (16%) of world sorghum production is exp...

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feed-grains soy-oilseeds wheat

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There were some jitters this week as Russia and Ukraine stepped up assaults ahead of what may become talks to end the conflict. Alongside concerns about a kinetic war is the uncertainty around the incoming Trump Administration’s aggressions in trade policy.It should be noted that geopolitical u...

livestock

Cattle on Feed Report

USDA released the monthly Cattle on Feed report today. Once again, placements surprised to the upside compared to pre-report analysts’ consensus expectations. The total cattle on feed inventory was 11.986 million head, which was slightly above last year’s 11.956 million head. Total feedlot inve...

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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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