FCI Wheat Exports via Traders As of 1 February 2013, wheat stocks in India's central pool totaled 30.809 MMT (including 0.146 MMT in transit), far exceeding the country's buffer and strategic requirement of 7 MMT. Even with exports made via public sector undertakings (PSUs), there still would not be enough storage space for the new crop. As a result, the government of India (GOI) finally has relented to traders' demands and needs. The new policy offers 5 MMT of wheat for export from Food Corporation of India (FCI) warehouses to private traders. There is a catch, however. The floor price is 14,800 rupees/MT, approximately $272/MT. With the added costs of freight and loading at port, etc., the FOB value would be $318/MT. The last few bids...
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.