Where's the Beef? USDA's semi-annual beef cattle survey for January 2013 shows that the beef herd in January 2014 will be about 1.5 percent smaller than it was last month. Last year's drought increased demand for slaughter cattle by about 1 percent over 2011; fed cattle and cull cow prices hit record highs for the third consecutive year and look to be even higher this year. Absent another drought or other feed cost shocks, these high prices should slow slaughter and lead to herd rebuilding, but that is a longer-term trend that is unlikely to impact feed demand for two to three years.According to USDA: All cattle and calves in the United States as of 1 January 2013 totaled 89.3 million head, 2 percent below the 90.8 million on 1 Januar...
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.