The giant corn and soybean harvests looming coupled with unprofitable low prices are creating a marketing dilemma for Corn Belt farmers. They are searching for ways to market unsold bushels and still retain some method of getting any price appreciation if markets turn higher. This should be simple.Hard red winter wheat cash prices have dropped so low that there are now Loan Deficiency Payments (LDPs) of as much as $0.40/ bushel. The LDP is the calculation of the difference between the cash price and the USDA winter wheat loan rate. When the cash price drops below the loan rate, a producer can elect to take that price difference as a one-time payment. Doing so then makes the producer ineligible to take the actual loan on those bushels of whe...
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.