The Biden Administration announced that it will ensure enforcement of the Phase One trade deal with China but that will not be much of a challenge when it comes to agriculture. U.S. sales to the Middle Kingdom are up over 100 percent. The increases include a 194 percent spike in soybeans sales and a 182 percent jump in corn sales. There have also been large increases in sales of products such as cotton, meat, ethanol, and tree nuts. The larger question is what happens in 2022 should Chinese farmers harvest bumper crops this fall. Marketing year sales are already lagging that of this time last year. There will be no trade agreement to blame for being violated since it expires at the end of 2021. If sales are lower in 2022, the politic...
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.