Wheat Argentina's Domestic Commerce Secretary Guillermo Moreno recently met with exporters to inform them of the 20 percent cut in export licenses. It was agreed that no more than 2 MMT of wheat can be exported through 28 February. As a point of comparison, 3.6 MMT were exported between December and the end of February during the last campaign. The decision caught exporters by surprise, and traders immediately rushed to the FOB market to cover their short positions on licenses. Because exporters already had sold more than 3 MMT from December-February, they appealed to the minister to increase the volume to 3 MMT so they can comply with sales.The government's arbitrary decision no doubt will cause big losses for exporters. Wheat prices ha...
What You Need to Know Today: U.S. weather is getting more attention this week as conditions vary greatly across the western, central, and eastern corn belts, with the different regions battling dryness and too much rain simultaneously. The ProFarmer Crop Tour began today in Indiana and Nebrask...
Key Takeaways: Argentina is on pace for a record corn crop and record exports in the current marketing year, with abundant supplies likely to keep the country highly competitive in global export markets. Argentina’s record exportable surplus is allowing it to offer highly competitive pri...
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.