News that the U.S. and the EU pulled back from a potentially escalating trade war gave financial markets a boost late yesterday, and the agreements between President Trump and EU President Juncker included a promise that the EU would buy more U.S. soybeans. Algorithmic trading programs read the headlines, and their buying helped push soybean futures higher by double digits in overnight trade. President Trump said that the EU agreed to “buy a lot of soybeans,” but there was no effort to quantify what that meant. In fact, President Juncker cannot direct the purchases of numerous private EU oilseed processors. Limited Argentine supplies and the China-driven premium for Brazilian soybeans mean the EU has to buy more from the U.S. no...
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.