A reader has pointed out that U.S. pork, a victim in the trade war with China, is priced lower than other suppliers, including less than half the value of EU pig meat. U.S. pig meat prices were actually seasonally lower in 2018 than this year. Moreover, U.S. and Canadian pork prices tend to move closer together and with greater volatility than those in Europe or Brazil. Nonetheless, the large dynamic is the relatively larger pork carryover stocks in the U.S., and the fact that they keep growing. U.S. pork prices are waiting a breakout based on prospective sales to China. Canadian pork sales to China have also been stymied for geopolitical reasons but there is no indication that they will be unleashed as a result of Washington’s pendi...
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.