Argentina’s Wheat/Corn Trust The Argentine government is being creative in trying to control inflation rates. They are trying to control local wheat and corn prices by creating a “trust fund” for domestic market consumption. Exporters will have to contribute about $150 million to the fund (though the amount is not confirmed yet) that will be used to subsidize local consumers. What the government doesn’t realize, or won’t acknowledge, is that farmers will ultimately pay for the “trust fund” as exporters will extract their payment from the FAS prices they bid. Farmers are understandably furious with this decision (that has not yet been officially announced) and started meeting this weekend to...
What You Need to Know Today: The Trump administration announced new tariffs of 10 percent to 12.5 percent on imports from 60 major U.S. trading partners as part of a Section 301 action aimed at combating forced labor in global supply chains. Countries that have agreed to adopt and enforce bans...
Key Takeaways: Grain futures pulled back sharply in overnight trade Friday on rumors that Ukraine proposed two possible options for ensuring civilian vessel safety in the Black Sea. Both Russia and Ukraine have recently targeted civilian vessels carrying oil and grain in the Sea of Azov...
Just when we thought it was safe to step outside and enjoy some certainty in the world of international commerce, the Trump Administration announced on Thursday afternoon a barrage of tariffs on 60 countries based on its recent Section 301 investigations. Section 301 permits the executive branc...
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.