The FAO reported earlier this year that the Global Vegetable Oil price index is at its second lowest level in eleven years. The vegetable oil index has sunk lower than the agency’s counterpart, the Cereal Price Index. The good market supply in relatively inexpensive palm oil helped pull down the index. These low prices are despite the policy inflated demand for vegetable oil as biofuel. The surge in the production of palm and palm kernel oil, predominantly in Southeast Asia but not exclusively, has improved the diets of millions of poor people that otherwise lack basic calories. However, over half the content of palm oil is the less healthy saturated fat. Soybeans and their derivatives get much of the market attention but there...
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.
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...