GOOD MORNING, The markets have ratcheted trading ranges higher on the back of the US/China trade negotiations and the promise of more business. Bean business has actually been transacted this week, and export sales were confirmed this morning. As to trade talk, skepticism is growing as the deal is not signed and traders are wondering how China will live up to their end of the bargain. There was an article in the Wall Street Journal suggesting that China may not need $40 bln dollars’ worth of US farm goods annually over the next 2 years, which includes a possible $2 bln pork, 1 bln DDG, 1 bln ethanol, and $2 bln corn. In the meantime, funds are net short corn, beans, and meal while long wheat and soyoil,...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
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.