The Brazilian market quickly became stronger last week. Two factors drove basis higher, especially in the CNF market where the most liquid position has been August. Soybeans The Brazilian market quickly became stronger last week. Lack of farmer selling and trading houses’ short positions drove basis higher, especially in the CNF market. The FOB market remains very quiet, much as it has been all year, with sellers showing offers just on the spot despite short pre-advice. Demand remains focused on the spot market as well, although it is always slightly more deferred than the offer side.In the CNF market, the most liquid position has been August. After trading at $1.22-1.25Q CNF North China just two weeks ago, basis rose quickly to $1.35-1.3...
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.