Meat packer margins worsened last week for both the beef and pork sector as higher animal costs exceeded any gains in meat values. Beef packer margins fell $43/head last week and scored a new 15-year low according to WPI’s models as fed cattle prices surged and outpaced a $5 gain in the choice cutout. Pork packer margins dipped$2/head as hog purchase costs exceeded a mild $1.10/cwt gain in the pork cutout. Pork margins are still positive and are unlikely to disrupt the industry’s supply and purchase plans, but the weakness in beef packer margins suggests the industry will be aggressive slowing chain speeds and reducing kills to control profits. The gains in fed cattle and market hog prices helped...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
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.