Bob Kohlmeyer and John Baize both wrote about the U.S. and world soybean situation this week. It is indeed fascinating, and it is almost a certainty that it will get even more interesting over the next several months. The fact is that soybeans (and other oilseeds as well) might find themselves in the same situation that wheat did back in 2007/08 when supplies got so tight there were legitimate concerns that someone someplace would be unable to cover their needs. Here are some things to consider in addition (or in conjunction) to what already has been said this week.We asked this question months ago: "How much demand is inelastic?" There are few substitutes for soybeans or soybean meal. Consumption didn't slow when prices were above $17 a...
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.