Errata: The original version of this article incorrectly state the January 2018 soybean yield estimate at 50.6 BPA, instead of the true February (which made up for the delayed January report) estimate of 51.6 BPA. All statistics related to this yield estimate and charts/tables have been corrected below. USDA surprised the commodity markets on Friday with bullish adjustments to the U.S. corn and soybean balance sheets, particularly the unexpected reductions in yields for both commodities. The surprise created by the latest balance sheet makes it worthwhile to evaluate the USDA’s adjusted estimates relative to historical patterns. For this analysis, WPI uses the USDA’s yield, harvested acreage, and production forecasts as published in th...
Beef packer margins deteriorated sharply to -$167/head last week, down $89 from the prior week as fed cattle prices rebounded while the Choice cutout continued to weaken. The cutout slipped to $363/cwt, while fed cattle prices climbed to $235/cwt, reversing much of the recent improvement in pac...
What You Need to Know Today: Tensions in the Middle East escalated over the weekend with Iran demanding the U.S. make multiple concessions that are likely non-starters before traffic can flow through the Strait of Hormuz again. Saudi Arabia, Pakistan, and Turkey signed a mutual defense agreeme...
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.