For many decades, sorghum was the Rodney Dangerfield of row crops, it could not get any respect. Over the past three years as total U.S. corn acreage expanded by 1.55 percent, the area planted to sorghum has exploded by 31.8 percent, albeit from a much smaller base number. The increased interest in planting sorghum is drawn from a price that has increased 87 percent in three years, versus 52.7 percent for corn. Exports generally and China specifically has been the cause of the sorghum price spike. Over half the sorghum crop is exported versus about a quarter of the corn, counting exports in all its forms. That implies greater risk for sorghum if export markets are more volatile than domestic demand. But sorghum also fares well under...
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...