USDA today announced two actions to intervene in the sugar market and avoid loan forfeitures: one was a second purchase of raw cane sugar to be offered for the retirement of Refined Sugar Re-Export Credits (the first purchase was announced on 18 June) and the second was the Feedstock Flexibility Program (FFP) which diverts sugar to ethanol.The first effort at the Re-Export Credit retirement program resulted in a purchase of 91,000 MT of sugar in exchange for a retirement of 300,000 MT of Re-Export Credits. To gain those credits back, cane refiners would have to export 300,000 tons of sugar – presumably domestic which helps the domestic market.Additionally, USDA announced the final rule for the long anticipated FFP, which is intended to av...
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.