The market opened mixed but ended mostly in the green. Prices were boosted by decent export sales, especially in wheat, very few deliveries against expiring May contracts, and of course short-covering. Although corn rallied back today it still lacks the rationale for a move higher. Unless China does something uncharacteristic, the overhang of surplus stocks is not going to go away. The International Grains Council (IGC) lowered its projected global grain use in 2019/20, including deleting 11 MMT of corn used for ethanol. Thirty-five percent of U.S. ethanol plants are off-line and the remaining 140 plants are running below capacity. There are visibly more cars on the road this week than in the past, but travel will remain...
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.