World Perspectives
livestock

Livestock Industry Margins

Beef packer margins strengthened for the fourth straight week and posted one of their largest weekly gains of the year. Margins rose $42/head to $57 as fed cattle prices slipped another $4/cwt and the cutout held near recent highs. The move pushed packer profits to their firmest levels since early summer and widened the spread between the cutout and breakeven values. The short-term setup still favors firm margins into late November as cattle supplies stay current and carcass weights remain steady. Any material slowdown in beef movement, however, would leave packers vulnerable to a quick retreat given the still-elevated breakeven. Feedlot placements improved modestly as ...

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Summary of Futures

Dec 25 Corn closed at $4.3675/bushel, up $0.02 from yesterday's close.  Mar 26 Wheat closed at $5.59/bushel, up $0.005 from yesterday's close.  Jan 26 Soybeans closed at $11.535/bushel, down $0.0375 from yesterday's close.  Dec 25 Soymeal closed at $327/short ton, down $3.8 from...

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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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