Last week’s USDA Quarterly Stocks report revealed that farmers are holding 36 percent more corn in on-farm storage than a year earlier. One rule of thumb is for farmers to calculate their break-even point and then market their crop over the marketing year. The old calculus, before South America became a counter-cyclical supplier, was for prices to be lowest at the start of the marketing year and then rise as supplies are depleted. That model is clearly discredited as corn prices now decline in the last few weeks of the marketing year. Farmers could try to continue holding on to their stocks, awaiting and hoping the market will eventually add a weather premium. Many larger farms are well capitalized for such a strategy. Bu...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
Key Takeaways: Peace at last in the Persian Gulf? Over the weekend, the U.S. announced and Iranian officials confirmed a peace agreement, with formal ratification set for Geneva on 19 June. The announcement means the Strait of Hormuz is set to reopen fully and toll-free within 30 days.&n...
From WPI Consulting
Accountability and a comprehensive approach to export programming
WPI’s team helped construct a strategic approach to develop, implement, and track promotional activities in 8 key regions across the globe for an agricultural export association. With continued progress measurement and strategic advisory services from WPI, the association has seen its ROI from investments in promotional programming increase by 44 percent over the past 5 years. Not only does this type of holistic approach to organizational strategy provide measurable results to track and analyze, it fosters top-down and bottom-up organizational accountability.