News Updates MEDITERRANEAN AND MIDDLE EAST COMMENTS Saudi Arabia has been quickly reducing the size of the locally grown wheat crop because of the high monetary and environmental costs of producing wheat under the adverse conditions found in the country. Now it seems that the end of 30 years of production is in sight, with all local wheat to be phased out by 2016. In 2012 local farmers supplied 770,000 MT of wheat to the government. The government said it will not buy any more local wheat after 2015. Of course, if there are no buyers, then there certainly will be no producers. Saudi Arabia consumes about 3 MMT of wheat for food use and about another 700,000 MT for animal feed use. The Grain Silos and Flour Mills Organization (GSFM...
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.