The CBOT opened with soybeans moving higher on a combination of short covering, improving technical conditions, and rumors of Chinese purchases of U.S. soybeans. WPI sources note that China secured several (at least 5 and possibly up to 15 cargoes?) of U.S. soybeans in recent days with duty-free import quotas having been granted to U.S. companies. Reuters reported that China has granted 1 MMT of duty-free imports to U.S. firms. The grain markets were steady/weaker with little fundamental news or reasoning to move one way or the other. Long soy complex/short corn/wheat trade sent the latter two commodities lower for the day. The weekly Export Inspections report showed slight improvements in corn shipments, with 18.9 million bushels (m...
Key Takeaways: Dry bulk markets remain mixed with Capesize vessels seeing continued pressure from weaker demand while fixtures and rate strength gradually increases towards the smaller vessel classes. Tanker markets are pulling back from their recent highs as tonnage moves out of the Mid...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
Key Takeaways: Texas illustrates the assumptions underlying the 2025 FMMO reform; Idaho exposes their limitations. The Southwest order blend (roughly 27 percent Class I, 32 percent Class III and 31 percent Class IV) exposes Texas producers to every lever USDA adjusted, with a near-neutral proj...
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.