South American producers have more problems and less financial support than their North American counterparts, and such difficulties could easily transition into greater price uncertainty for global grains and oilseed markets during the next few seasons.Argentina's National Health Service and Food Quality (SENASA) reports that grain and oilseed product shipments in the first half of 2014 are down 33 percent year-on-year. Market participants are generally aware that there are several reasons for this reduction in the overall export pace. These include the Argentine government's own inability to approve exports, Argentine farmers' use of grains as a hedge against inflation, the weather that delayed harvest by more than a month and logistical...
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...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...
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.