Soybeans Brazil The Brazilian soybean market fell steadily last week as the depreciating Brazilian real pressured prices. The currency reached 3.8 reals/USD this past week, marking a 22 percent year-to-date devaluation (the exchange rate was 3.1 reals/USD in early 2018). Farmer selling has been aggressive, and it is estimated to have possibly reached 75 percent by the end of last week, well ahead of around 60 percent a year ago. This has pressured nearby shipment values as trading houses have been receiving soybeans, thereby forcing them to deliver and ship those stocks. That increased the market’s carry to an incredible 25 cents and 28 cents/month in the FOB and CNF markets, respectively. The need to sell on the spot forced price...
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.