When it comes to holding stocks of surplus corn and wheat, no country comes close to China and the U.S. is a distant second. However, it is vastly different when it comes to holding soymeal. For this commodity, it is South America atypically holding nearly half the world’s surplus stocks. U.S. crushers tend to work for buyers, and in this case, compounders are providing a healthy crush margin to take ownership of soymeal. The U.S. carries only around 3 percent of global ending stocks and the EU keeping a similar percentage. It is easier to store soybeans and crush when needed than to store soymeal, which can become compacted and even more so when moisture is present. Part of the higher storage tendency is derived from the fact...
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.