After several months of very profitable crush margins, the Chinese soybean crushing industry has seen margins collapse to very unprofitable levels in the last few weeks. China's COFCO Apparently Seeking to Buy Major Stake in Nidera Reuters reported today that China National Cereals, Oils and Foodstuffs Corporation (COFCO) is in advanced talks to buy a major stake in the Dutch grain trader Nidera. COFCO, a state-owned enterprise, is a large soybean processor in China and is expanding into feed milling and swine production. A source in Asia indicated that it wanted to acquire a majority stake in Nidera and may be willing to pay $2 billion to do so. By purchasing a large share of the company, COFCO would gain direct access to soybean and cor...
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.