Farmers now face a predicament they haven’t faced since the bull market started nearly 10 years ago: they are carrying large old crop supplies and have sold very little of their expected 2015 production.Grain and oilseed prices continue to push lower and the window for a life-saving rally to allow U.S farmers to sell their large remaining old crop supplies is closing. There are significant supplies of corn, wheat and soybeans still sitting in farmer’s bins. The USDA will tell us how big those supplies were as of 1 June at the end of this month. Farmers have been waiting for a rally to finish off old crop sales since the last harvest. Hopes for a weather related rally in soybeans disappeared with record crops in Brazil and Argentina. T...
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...
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.