The U.S. beef cutout is still at elevated levels and cattle prices are in the doldrums as capacity and labor issues create a kink in the value chain. Bottom line, cattle supplies exceed the current ability of U.S. packers to process enough to meet domestic and export beef demand. Things are getting tight all over. Beef prices in Argentina are up more than 48 percent Q1 2021 over Q1 2020, so Argentina has put in a beef export ban. The ban has been met with a cattle producer strike withholding cattle from the market. The ban is for 30 days, but the situation is tenuous, as the mid-term elections are coming. Because of COVID, the elections have been postponed; the primary elections were moved from 9 August to 12 September, and the...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
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.