General Comments Yesterday it was noted that a pronounced level of profit-taking could become evident in futures contracts for the next week. Such activity became evident today. The need to take profits does mean that every day for the next week will result in a price decline due to significant selling, but it does not imply that the trade action is likely to be volatile. That increased volatility is what produces the run-up on option prices prior to key USDA reports.The market is likely to be wound up like a rubber-band by the close of next Thursday. (USDA's report will be published the morning of Friday, 10 August.) Experienced money managers know that it is much more acceptable to take profits and then later reestablish the position a...
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
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.