One of the most consistent trading patterns over the long history of grain futures markets is described in the old cliché, “buy the rumor, sell the fact.” In our also long experience there have been literally countless instances when bullish rumors of one sort or another have prompted traders to buy grain futures. That has been a common feature of grain futures markets. But when those rumors were confirmed to be true, many of those previous buyers quickly sought to sell the futures contracts they bought in response to the rumors. Once the bullish rumor is confirmed, short term speculative traders (we put many managed funds in this category) often try to immediately cash in any rumor-inspired paper profits they have...
From WPI Consulting
Illuminating the value of technical research
On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.