General Comments Following the bullish reports from USDA, grain and soy futures prices strengthened as the need to slow down the domestic use of corn and both domestic and export demand for soybeans was made obvious. However, with large South American crops drawing ever closer and U.S. spring planting barely more than two months away, markets can perhaps be best described as nervously bullish. Many traders now may be reluctant to be short, but the longs tend toward a short-term view, often using the next rally to cash in. Thus, the last two overnight sessions have opened with profit-taking pushing prices below the previous closes. In turn, the early overnight price dips have been met by fresh buying, causing prices to recover and move hi...
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.