It was an expensive day on LaSalle Street for those previously bullish the 2019/20 U.S. corn crop. Those betting that USDA’s second look at corn planted acres and crop conditions would force a reduction in the crop estimate were sorely disappointed, and that was just about everybody. Even the most optimistic analysts expected the agency to reduce estimated corn production by 325 million bushels (-2.342 percent). However, USDA raised its prediction by 125 million bushels (+0.18 percent). Instead of being a disaster, the stronger evidence led it to conclude that this will be the fifth-largest crop in the past eight years. Today’s market action reflects the disappointment. Could USDA still be wrong? Could the increase be a mistak...
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...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
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.