One of the thorniest issues involved in setting speculative position limits concerns the exemptions that commercial market users are able to receive for positions that are bona fide hedges against risks they face in the course of conducting their businesses.The process of setting maximum limits on the size of long and short positions that speculators are allowed to hold in commodity futures, options and swaps markets is highly complex. In fact, it is much more so than Congress envisioned when it passed the Dodd-Frank financial reform legislation in 2010. To the general public, there has always seemed to be something unsavory about speculation and speculators. This attitude was quickly adopted by many of the political class, and excessive sp...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...
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.