World Perspectives
livestock

Meat Glut

The current concern by some about rising grain prices will soon be met by falling meat prices. China reportedly imported 9.91 MMT of meat in 2020, a 60 percent increase to address shortages caused by ASF.  That means that roughly 30 percent of globally traded meat went to China. With China’s rebuilding of its hog herds occurring faster than expected, producers elsewhere will need to concurrently make quick downward adjustments in their output or else risk a glut of meat on world markets.  Ordinarily, the rise in price of a major input like grain should signal the market to reduce livestock production. However, when corn prices hit roughly $8.00/bushel in 2011/2012, there was no discernable reduction in meat production as a...

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Beef packer margins weakened further last week, with estimated net losses widening to -$247/head, extending the deterioration seen through late January. Boxed beef values were firmer last week, but gains failed to offset increases in fed cattle prices, resulting in additional margin compression...

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feed-grains soy-oilseeds wheat

Summary of Futures

Mar 26 Corn closed at $4.275/bushel, down $0.0125 from yesterday's close.  Mar 26 Wheat closed at $5.3725/bushel, up $0.09 from yesterday's close.  Mar 26 Soybeans closed at $11.24/bushel, up $0.015 from yesterday's close.  Mar 26 Soymeal closed at $303/short ton, up $2.2 from ye...

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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.

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