World Perspectives
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Market Commentary: CBOT Rallies Again; WPI 2020 S&D; Beef Turning Bullish

The CBOT was mostly higher to start the week with soybeans and soyoil extending their rallies. Corn and wheat were firmer but posted a relatively lackluster day of trading. Soyoil reversed course and fell lower under pressure from long profit taking and bull soyoil/soymeal spreads. Cattle futures were higher while lean hog prices fell, despite a massive rally in the cash market. Funds were net buyers of some 5,000 contracts of soybeans and 2,500-3,000 contracts of wheat. Funds were flat corn as speculators remain cautious ahead of harvest.  Following last week’s WASDE and Crop Production reports, WPI has updated our 2020/21 outlook for the U.S. corn and soybean balance sheets. WPI still expects 2019/20 corn used for ethanol to b...

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feed-grains soy-oilseeds wheat

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The Q1 2024 GDP was 1.6 percent, well below the pre-report consensus expectation of 2.4 percent, and down from 3.1 percent in Q1 2023 and 3.4 percent in Q4 2023. That rate was the slowest in almost two years, dating back to Q2 2022.  Recall that in the 2 February Ag Perspectives report on...

soy-oilseeds

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Q1 GDP Comes in Low, Interest Rate Expected to Stay High

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As WPI readers likely well know by now, U.S. gross domestic product (GDP) grew at an inflation- and seasonally-adjusted 1.6 percent rate in Q1 2024, which missed economist’s 2.4 percent expectations. The data sent shockwaves through U.S. financial markets with U.S. stocks and bonds openin...

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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.

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