Wheat Wheat is still super boring in Argentina as the market dynamics repeat themselves day after day. There is no farmer selling, millers are buying slowly to cover their spot needs, and only from time to time will exporters come out to sell part of their wheat. Consequently, prices in the local market remain flat, between $295-300/MT in the futures market (about $350/MT FOB equivalent), and $10-20/MT higher in the milling market, depending on location and quality. At these prices, everyone knows that Argentina cannot compete to export anywhere in the world, and there is no intention from exporters to compete and build large programs. It seems that once the old contracts to different destinations are completed, there will only be e...
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...
We have described the long-term investment climate in crop and livestock production, using data primarily from the Bureau of Economic Analysis (BEA). The data provided background on the current investment climate and outlook for agricultural capital formation. Our conclusion was that investment...
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.