Miscellaneous Initial excitement over China’s pledges to buy American farm products has faded, as no purchases have immediately materialized. USDA Deputy Secretary Stephen Vaden said he is confident that China will meet its purchase commitments from the U.S., but market conditions and trade dynamics have changed expectations. China’s exports surged 19.4 percent in May versus a year earlier, but some worry that future sales will be hurt by higher input costs from the Middle East. Plus, the large pool of low-cost labor supporting export growth is quietly receding in size, though it is hoped that robotics will solve that problem. The U.S. announced new tariffs with the same goal but a different rationale, imposing up to 12.5 percen...
What You Need to Know Today: The Trump administration announced new tariffs of 10 percent to 12.5 percent on imports from 60 major U.S. trading partners as part of a Section 301 action aimed at combating forced labor in global supply chains. Countries that have agreed to adopt and enforce bans...
Key Takeaways: Grain futures pulled back sharply in overnight trade Friday on rumors that Ukraine proposed two possible options for ensuring civilian vessel safety in the Black Sea. Both Russia and Ukraine have recently targeted civilian vessels carrying oil and grain in the Sea of Azov...
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.