La Niña events are not infrequent and should provide some level of predictability. However, there is wide variability in each event, seed genetics consistently improve and so does crop forecasting capability. In the past three La Niña years between USDA’s December WASDE forecast for South American corn production and its June WASDE estimate, it has lowered its estimate for Argentine corn production two times and raised it once. Over that same period, USDA has also lowered its estimate for Brazilian corn production twice and raised it once, but not in the same years as the corresponding changes in Argentine production. In the 2015/16 La Niña, it lowered Brazilian production but raised Argentine output. In the 2011...
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...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...
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.