U.S. hog producers saw a mixed year in 2024 with early-year prices bringing poor profitability while the dramatic hog rally since the summer has lifted financial fortunes significantly. A major component of those rising prices was the unexpected surge in pork demand, which pushed the cutout to new seasonal highs this fall. Now, producers, packers, and pork buyers are wondering what 2025 will bring and how demand and prices will fare in the post-election environment. WPI has just completed an update to our long-term (one-year forward) outlook for the hog and pork markets. The major findings from this effort are that producers are likely to see strong prices for the coming year, and if crop prices do not rise significantly, strong profit...
With no bullish surprise out of Beijing this week and good weather taking over many global crop areas, funds spent the past couple of days selling off the peak positions they had built. CNN’s Live Updates blared, “No signs Trump and Xi resolved any thorny challenges.” By...
The long-awaited meeting between President Trump and President Xi of China has concluded, and details are elusive, though Trump stated today that he and Xi made some “fantastic” trade deals. Both countries reported the meetings as a success, but that has more to do with positioning...
We at WPI hear frequently that U.S. agriculture is broken and needs fixing. This argument is often heard in MAHA-related discussions and focuses on highly processed food consumption or the overuse of pesticides and chemical fertilizers. Among farmers and food processors, however, especially tho...
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.