Shifting trade flows for major agricultural commodities are usually directed by prices and comparative values. When it comes to agricultural trade, it has been said that the direction toward the highest prices is always downhill. It is hard to argue with this truism. In an ideal world, grain will move from where it is in surplus (cheapest) to wherever it is in short supply (highest priced). To prove the point, there have been a number of examples when uncommon comparative values have led to unusual trade flows for major agricultural commodities in recent years.We would contend that the price relationships that have led to most of the unusual trade flows recently are actually rooted in weather. More particularly, they have been the result...
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.