WASDE and the Soybean Sector Tuesday’s USDA crop production and WASDE reports sent a shock through the soybean sector. USDA reduced its estimate for the 2020 U.S. soybean yield from 51.9 bushels/acre (3.49 MT/hectare) to 50.7 bushels/acre (3.41 MT/hectare). That resulted in reducing its estimate for the U.S. soybean crop from 4.268 billion bushels (116.16 MMT) to 4.17 billion bushels (113.5 MMT). Because of the lower U.S. production, USDA reduced its forecast for U.S. soybean ending stocks from 290 million bushels (7.89 MMT) to 190 million bushels (5.386 MMT). That is the lowest stock level since MY 2013/14. USDA raised its forecast for the average U.S. soybean farm price from $9.80/bushel to $10.40/bushel. The ending stocks amounts...
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.