U.S. farmers are starting to face the ugly reality that $3.50-4.00 corn, $8.50-9.00 soybeans and $5.00 wheat simply don’t work, even with big yields. Like elsewhere around the world, the result is likely to be fewer planted acres and reduced crop inputs in 2016.This week’s Mercosur Regional Analysis (see Ag Perspectives, 30 September 2015) included a discussion regarding how farmers in Argentina are losing money at current price levels there and will continue to do so (based on those prices) on substantial portions of the expected corn and soybean areas, which could result in a steep decrease in acreage. WPI has addressed this topic on numerous occasions in the recent past. For some reason, many (if not most) analysts believe these low pric...
What You Need to Know Today: A third U.S. border crossing (Columbus, New Mexico) has reopened to Mexican cattle imports following nearly two years of restrictions related to New World screwworm. The reopening could gradually improve feeder cattle availability, although more than 60 confi...
Yesterday, the USDA’s Agricultural Marketing Service (AMS) released a new report of negotiated cash purchases of cattle under the mandatory price report. The report included Colorado, New Mexico, Oklahoma, Texas, and Kansas. The goal of the report was to solve the confidentiality issues e...
Key Takeaways: U.S. soybean crushing began in 1911 and saw its most rapid expansion during the 1930s amid the broader agricultural and technology revolutions of the time. After peaking in the early 2000s, the soybean crushing industry went through a downturn as poor crush margins forced...
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.