From a strictly fundamental perspective, the U.S. and world supply/demand balance appears to be quite bearish. To be sure, there is record or near-record demand, but this is being met with bigger crops that are building stocks to historic levels.It has become a cliché to describe the world as being awash in grain and oilseeds in 2016/17, and yet it is a description that is hard to avoid. USDA’s December WASDE of 9 December makes that point rather emphatically. The world holds enormous supplies, and the estimated volumes have been growing in each of the recent monthly WASDE reports. World wheat production for 2016/17 is put at 751.3 MMT, world coarse grain production is estimated at 1,329.4 MMT, and world oilseed production is called at 644...
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.