JBS is back in the news this week as the company made two announcements; first, that it would be adding 300,000 head of capacity at its Omaha and Grand Island plants and second, that it would be increasing wages. The latter reflects the larger issue right now with beef slaughter – capacity can be expanded, but labor is short to run at even the current capacity. Monday’s total kill was 115,000 head, shorts of what is needed to catch up with cattle supplies, but that comes after Saturday’s unusually large run of 98,000 head trying to catch up after the impact of the cyber-attack disruption and short week after the Memorial Day holiday. This has become a routine of Monday’s being slow due to labor absences after Saturd...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
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.