As surplus corn stocks begin to build, U.S. farmers start to think about price and their return on investment. This is likely why the June USDA crop plantings report reflected a 5-million-acre reduction in corn from the March planting intentions report. While rising corn ending stocks tend to cause an inverse reduction in price, the reaction is far more pronounced when surplus stocks fall. Between 1982 and 1983, corn ending stocks fell by 71 percent and price jumped by 22 percent. Between 2009 and 2012, surplus stocks fell by 51 percent and price climbed by 97 percent. As that trend reversed between 2012 and 2018, stocks climbing by 170 percent, price fell just 47 percent. Basically, fear of losses outperform opportunity for gains. B...
What You Need to Know Today: China’s state-run COFCO, in statements on Tuesday, implied that U.S. corn exports were currently uneconomical but hinted that the Middle Kingdom would import 3.5 MMT of the feed grain this year, with 1 MMT likely sourced from the U.S. Another drone attack has...
Tanker-tracking data shows a smaller recovery in oil flowing through the Strait of Hormuz than previously thought. Energy Secretary Chris Wright, speaking by video to an international energy conference in Riyadh, Saudi Arabia, said that oil moving through the strait was back to 80 to 90 percent...
Key Takeaways: While soybean, palm, sunflower, and rapeseed oils dominate global vegetable oil markets, premium oils such as olive, avocado, coconut, and sesame command substantially higher prices due to their distinctive flavors, nutritional characteristics, and specialized culinary uses.. Ol...
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.