Higher Prices Needed to Ration Soybean Demand Last week's export sales report and this week's NOPA crush report shows the pace of U.S. soybean use is quickening, not slowing. Soybean export sales last week totaled 1,319,400 MT, a marketing year high. China was the main buyer, with purchases totaling 1,008,800 MT. The sales brought U.S. total soybean export sales thus far in 2012/13 to 28.414 MMT (1.044 billion bushels). That's 77.6 percent of USDA's forecast for exports in all of 2012/13, and we are only one-fourth of the way through the marketing year. This does not count the 91,000 MT of soybeans sold to unknown buyers for shipment in 2012/13 that USDA reported this week. It is still at least three months before large shipments of new...
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.