The much-anticipated August WASDE featured cuts to U.S. corn and soybean yields and production with smaller global ending stocks for corn, soybeans, and wheat. The report’s change from the prior month initially looked bullish, but the trade had largely expected these changes and USDA’s numbers fell well within the range of pre-report expectations. In response, the market adopted a “no news is bearish news” approach and corn, wheat, and soybeans all sold off following the report. Funds were net sellers for the day, especially in corn and wheat where larger U.S. ending stocks are pressuring the price outlook. One key to interpreting today’s futures price action in light of the WASDE is to remember that corn, soyb...
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.