Livestock industry margins were decidedly mixed last week with diverging trends developing across the industry. Beef packer margins gained for the second straight week thanks to stronger beef prices that offset higher fed cattle prices, while feedlot margins dipped for both placements and closeouts Higher expected feed costs were the primary driver of the fourth straight week of declining feedlot placement margins with returns being negative for the third straight week. Closeout margins for feedlots fell from the prior week due to higher estimated feeder cattle purchase costs and greater cost of gain. For the hog and pork industry, packer margins weakened slightly last week as hog prices rose slightly and the drop value dipped, both o...
Veterans Day offers a moment to pause and recognize the people behind the uniform. To all who have served and the families who have supported them, thank you for your dedication, courage and sacrifice. Markets had plenty of headlines to digest today, and grains offered some encouraging follow-t...
Key Takeaways: The recent pullback in crude oil and other energy markets has left many in the ag and biofuels communities wondering what it means for ethanol and biodiesel prices and profit margins. WPI’s research indicates a weak but still significant link between ethanol and crud...
Key Takeaways: Alabama and Louisiana have requested partial waivers of 2027 Renewable Fuel Standard (RFS) requirements, arguing that rising compliance costs are contributing to higher fuel prices and economic hardship. Louisiana Governor Jeff Landry is encouraging neighboring states to join th...
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.