World Perspectives
feed-grains soy-oilseeds wheat

Market Commentary: Surprise! Corn, Soybean Acres Below Expectations; CBOT Ends Limit-Up

USDA surprised the markets with planted acreage forecasts that were well below pre-report expectations. USDA pegged 2021 corn acres at just 91.1 million, up fractionally from the prior year while soybean acres were pegged at 87.6 million, up 5.4 percent. Both figures were well below the low end of pre-report estimates, giving the report an undebatable bullish implication.  Another surprise was slightly larger than expected wheat acres (especially winter wheat) while sorghum acres were well below expectations. Indeed, WPI’s models have been consistently predicting 7.5-7.7 million acres of sorghum, which now looks to be too optimistic.  The “other” report of the day, USDA’s Grain Stocks report, was mostly...

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livestock

Livestock Roundup: HPAI Developments

Yesterday, the Animal and Plant Health Inspection Service (APHIS) issued a federal order requiring testing and reporting of highly pathogenic avian influenza (HPAI) for the interstate movement of lactating dairy cattle. Specific guidance will be issued at some point today, and the order will go...

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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.

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