The Trump administration’s announcement last week of a $12 billion-aid package for struggling farmers impacted by Chinese retaliatory tariffs on U.S. soybeans and other products could create a situation similar to China’s huge corn and wheat surpluses. The proposal, which essentially returns USDA’s Commodity Credit Corporation to its initial role of the 1930s, calls for direct payments to farmers to offset their reduced incomes from low prices as well as expanded trade promotion activities overseas and increased purchases of surplus commodities. Food banks and other food assistance agencies may relish having additional resources for serving their communities, but USDA buying up surpluses in a year when forecasts for corn,...
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.
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...