A sudden increase in freight rates from the U.S. Gulf has made Chinese buyers nervous. U.S. FOB prices remain on par with Brazil’s, but certain issues regarding the latter’s soybeans this year are boosting both demand for U.S. origin and Argentine basis levels. Soybeans A sudden spike in freight costs is making buyers nervous. In the past few months, FOB and CNF prices were dropping gradually as Chinese buyers were only in the spot market and bidding very cheaply. The situation was stable until suddenly, for unknown reasons, the U.S. Gulf freight rates started to rise. This week they suddenly increased $4-5/MT for December and January shipment and grew from $29/MT to $34-35/MT for shipments to North China (canal voyage). Freight rates fro...
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.