Soybeans Market Overview Chinese demand remains very slow as reductions in Dalian soymeal futures exceeded those of CME futures, leaving gross crushing margins in China at $15-17/MT (depending on the area and basis used). With crushing costs near $15/MT, there is almost no profit. The Chinese have been working with gross crush margins of $26-28/MT all year, and their recent declines are the reason more purchases were not made despite inquiries for August. Moreover, the market was waiting for China to decide whether to buy U.S. soybeans. After meeting with President Xi at the end of June in Japan, Trump tweeted that the U.S. would delay additional import tariffs on Chinese goods. The decision was intended to give both sides time to find a...
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.