USDA's Risk Management Agency (RMA) calculates the initial (and minimum) price levels for the crop revenue insurance program in the fall for winter-planted crops and during the month of February for spring-planted crops. These prices are based on the average of the daily new crop futures prices for the crops that have futures. There are other formulas used to calculate the prices for crops without futures markets, like barley sunflowers, durum etc. WPI has often expressed the opinion that this crop revenue insurance program has been primarily responsible for the soaring of land values and cash rental rates. The price guarantees for the last three years have been very high from a relative standpoint. The table below shows a comparison of t...
What You Need to Know Today: Cattle futures extended their sharp selloff Friday as weakening cash cattle prices, deteriorating feedlot profitability, and reduced packer demand continued to weigh on the market. The inability of futures to sustain a rally following last week's bullish Cattle on...
As predicted, the Federal Reserve held rates steady at the last meeting before the midterm elections, likely in part because of the election (see WPI 19 October and 22 September). The decision comes at the tail end of a midterm election cycle that has been marked by the two parties campaigning...
Key Takeaways: WPI’s new EU rapeseed crushing margin models point to weaker processing returns over the next four months due to higher rapeseed procurement costs and weaker product values. Statistical forecasts call for German crushing margins to decline from €181/MT to €...
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.