Ukraine has announced an export stoppage for various agricultural commodities, including for oats, and Russia said it would restrict exports to certain markets but has not specified what or where. USDA today cut its forecast for wheat exports from these two major suppliers. The WASDE report raised the market average price for oats from $4.00/bushel to $4.20/bushel. The value of oats are now up over 50 percent from last year, rising from $122.15/MT to $185.19/MT for 2022/23. Mid-session today, March oat futures are up almost 10 percent but there are declines in the deferred. Although Russia and Ukraine collectively supply just 7 percent of global oats, the stocks to use ratio is just 9.6 percent. Mitigating some of the impact is the fact th...
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...
We have described the long-term investment climate in crop and livestock production, using data primarily from the Bureau of Economic Analysis (BEA). The data provided background on the current investment climate and outlook for agricultural capital formation. Our conclusion was that investment...
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.