Soyoil prices again pushed higher than soymeal today, pushing the oilshare of product value ever higher (approx. 36.85 percent). The price difference cannot be justified looking just at U.S. supply/demand since its domestic soymeal ending stocks are pushing lower while soyoil stocks are steady. Instead, it is the global surplus stocks of all vegetable oils that are forecast to hit the lowest level in a decade (see graphs below). Last year it was oilshare that got pushed down to record lows (28 percent) as the demand for biofuel plunged along with petroleum as governments shut down their economies for COVID. There are other wildcards. Argentina is the largest exporter of soybean meal and oil and so its various strikes and export stoppages i...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
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.