Wheat Argentina Argentina’s farmers are showing a lot of concern about next year’s planting season. Argentina imports more than 60 percent of the fertilizers it uses, which creates a twofold problem. First, prices have risen sharply and second, Argentina’s lack of U.S. dollars will affect their ability to pay for imports and, consequently, secure supplies for farmers. For the time being, Argentina’s wheat export duties will remain unchanged at 12 percent. It is notable, however, that the government can do much more damage to prices and market flows by crimping exports than by increasing withholding taxes. A simple example for this, last week Chicago futures dropped between $12-15/MT (depending on the positio...
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.