China is in its holiday season; first was the Winter Solstice, the shortest day of the year, on 22 December. Next is the Lunar New Year which begins on 10 February. Both traditionally mark seasonal demand for pork. We know that last year, after extended COVID lockdowns through 2022, the 2023 Lunar New year demand was disappointing compared to what was expected. Consumers were focused on saving money or were staying home still sick with COVID. The next 30-45 days will be interesting to watch to see if holiday pork demand grows. So far, the situation has been bearish. Pork prices ended 2023 at about ¥24.60/kg, which is a 25.5 percent drop for the year. The official November CPI for pork shows a drop of 31.8 percent. The Chinese gov...
Key Market Insights July is here, and the grain markets already feel like they are shifting gears. With the June USDA reports now behind us, inflation is back in the conversation, and traders are once again turning their attention to three familiar summer drivers: demand, money flow, and weathe...
Key Takeaways: Poultry is the fastest-growing major animal protein, supported by lower production costs, affordability, and broad consumer appeal. Broilers are the most feed-efficient major livestock species, giving chicken a lasting cost advantage over beef and pork. Short production cycles a...
What You Need To Know Today: Ethanol margins continue to run well above year-ago and normal seasonal values, but have slipped in recent weeks on weaker DDGS and ethanol pricing. WPI’s models project a steady decrease in returns to ethanol production following the end of the summer...
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.