While the DDGS component of the Chinese feed market is still relatively small, it is an important one for U.S. DDGS as it accounts for 58 percent of all exports so far this year and thus impacts the net profitability of ethanol production.DDGS prices had been surprisingly bullish of late and trading at a premium over corn, largely due to the export pull from China. Whereas corn was cheaper, China had a balancing act to perform for its own market in order to keep corn prices up and fulfill the overall need for protein. Reports surfaced yesterday that China has turned away about 2,000 MT of U.S. DDGS. More rejections are expected in coming weeks as Beijing imposes strict checks on the genetically-modified (GM) MIR 162 that was developed by Sy...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
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.