During the past several weeks the worldwide impact of the coronavirus and the resulting severe slowdown of economic activity have sent most financial markets spiraling lower. However, their decent has been accompanied by a sharp increase in volatility. Stock market indices have experienced almost unbelievably sharp spikes both up and down. While the Dow Jones Industrial Average was losing about a third of its value, it endured numerous daily swings in both directions of 1,000 or even 2,000 points. Gold prices and the U.S. dollar have surged higher as traders sought “safe havens” for their money. During the same period of time, grain and soy futures markets have been largely independent of the gyrating financial markets. Grain a...
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.
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...