Commodity markets received an early bullish surprise after the Saudi-led OPEC+ announced it would cut crude oil output 1.2 million barrels/day starting in May and lasting through the end of 2023. Analysts are speculating the move is intended to push prices back to the $100/barrel mark. The news was supportive for energy complex futures and, in turn, ethanol and soyoil due to their connections to energy markets. CBOT traders also continued to react to the implications of USDA’s Friday reports with soybeans pushing higher still on thoughts that ending stocks could fall another 20 Mbu from the already tight 210 Mbu forecast. Wheat futures pushed higher in early trade but gave up most or all those gains amid profit taking and some physica...
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.