Weather has not been friendly to world wheat production so far in 2012. Dry conditions have impacted wheat crops in Russia, Ukraine, Kazakhstan and Western Europe, and they are now threatening the yield potential in Western Australia and, to a lesser extent, eastern Australia. The U.S. winter wheat crop, although still very good, will be less than reflected in the May USDA estimates because of the hot and dry weather in the Southern Plains when the crop matured. Bob Kohlmeyer took a good look at the potential U.S. wheat outlook in his Tuesday analysis. The table below is a preliminary look at where we think world wheat production could fall in 2012.Note that our world wheat production forecast of 660 MMT is far below the May USDA estimate...
Key Takeaways: President Trump announced $8 billion in additional agricultural assistance through the Harvest Fuel Relief Program, as USDA projects farm fuel and oil expenses will increase 28.8 percent in 2026. The package follows $12 billion in earlier relief, while government farm payments w...
Key Takeaways: A student group from the University of Chicago is protesting to bring back onion futures trading. Trading in onion futures was banned in 1958 following a spectacular bout of market manipulation that resulted in a corner of the physical market. The ban on onion futures led t...
Beef packer margins deteriorated to $141/head last week, down $55 from the prior week as fed cattle prices strengthened while the Choice cutout remained nearly unchanged. The cutout held near $373/cwt while fed cattle prices climbed $4/cwt to $224/cwt, narrowing processor profits. Despite the d...
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.