Soybeans Market Overview Interestingly, soybean basis started to drop quickly last week for nearby shipments after several weeks of a stronger old crop market. The collapse started in Argentina with exporters trying to buy demand and offers suddenly posted at 180X FOB for November shipment. Earlier this year, those offers were at 210X, and the last trade was two weeks ago at 198X FOB. Argentina’s soybean basis fell sharply because of the dramatic weakening in soymeal basis around the world in recent weeks. The latter is the result of U.S. crushers covering most global soymeal demand due to the U.S. soybeans being the cheapest by far in the world. In turn, that has taken business away from other suppliers like Argentina, Brazil and...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Key Takeaways: Consumer spending is a key driver of the U.S. economy, and the latest retail sales data indicate that spending remains robust despite inflation. In September, total retail and food service sales rose more than 6 percent year-over-year, with food service spending up 7 percent and...
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...
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.