There is no question that U.S. corn and soybean exports will be greater than anticipated even a month ago in USDA’s May WASDE, largely because of some significant changes in underlying fundamentals. Corn and soybean futures markets have been on quite a roll over the past month or two. Most of the rallies have been attributed to significant fund buying. That has certainly been the case with funds now reportedly long over 200,000 contracts of soybean futures, 81,000 contracts of soymeal and over 70,000 contracts of corn. There have also been some significant changes in the underlying fundamentals of corn and soybeans. Argentina’s soybean crop was badly damaged by excessive April rains. Not only was actual production lost, but it is becoming m...
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.