Here is an interesting riddle: With USDA likely to increase its already record large 2020/21 world wheat production estimate a few MMT in Friday’s October WASDE, why is it that the spot CME December 2020 Wheat (SRW) contract is trading at the highest level for a spot CME wheat contract in more than five years? For the last five years or so we have gotten used to mostly placid, dull wheat markets – both futures and cash. Markets were burdened by surplus supplies, and volatility was usually quite low as was futures trading volume. World wheat production has steadily risen and should be near 770 MMT in Friday’s October WASDE. Ending 2020/21 world wheat stocks are estimated near 320 MMT which would be 41 percent of annu...
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.