The surprise from USDA’s October WASDE (released last Thursday) was the reduction in the estimated U.S. national average corn yield from September’s 181.3 bushels/acre (BPA) to 180.7 BPA. It was not so much the amount of the change that was unexpected but rather the direction. Big crops get bigger, as the saying goes, and when the corn yield estimate rises from August to September, which it did this year, there is also most often another increase in October. However, this big crop did not get bigger. With acreage estimates unchanged, the October yield reduction took estimated production from 14.827 billion bushels in September to 14.778 billion bushels. In hindsight, the variability of harvest yield reports from producers in nea...
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.