China claims that its pig herd is now down 20 percent from before ASF decimated its stock, but USDA places the country's pork production down 33 percent. Pork meat imports over that same period are up 193 percent. China is subsidizing pig farmers both large and small, but it doesn’t help when domestic corn prices are the equivalent of $9.00/bushel, roughly 144 percent higher than the price faced by U.S. farmers. If China needed role models for how to expand, it might look to other large producers that have been expanding rapidly. In four years, Russia’s pork production has expanded by 17 percent, Mexico’s by 16 percent, and the U.S. by 11 percent. Granted, these are expansions from a much smaller base than China&rsq...
What You Need to Know Today: President Trump claimed the ceasefire between the U.S. and Iran was over, as both sides accused one another of violating the terms of the agreement. Commercial vessels are increasingly steering clear of the Strait of Hormuz as security risks escalate following Iran...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
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.