The market bounced off new contract lows from earlier this week and while it usually would buy on a rumor it took reports of Chinese buying interest with a wee bit of caution. JC Intelligence believes China will buy 10 MMT of soybeans and 20 MMT of corn from the U.S. as part of the Phase One trade deal and to refill strategic stocks. The soybean number is considerable, but the corn number would be historic. Still, it is not enough to offset the plunge in corn demand from ethanol makers. Feed demand in China is strong, which is notable considering continued problems in the nation’s pig herds. There is also a rumor that China wants to buy U.S. beef, though getting it through a packing plant is an increasing problem. There are mor...
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.