In the 1840s, the ad hoc trading of physical lots of wheat, corn, rye, oats and hay on a street corner in Chicago eventually became transaction-based on standardized terms. That development allowed traders to buy and sell physical quantities of grain for delivery at specified times in the future rather than only for spot delivery. This then evolved into a formal futures market by the late 1860s under the auspices of the Chicago Board of Trade. The ability to buy/sell grain for future delivery and avoid the obligation to make or take actual delivery through opposite transactions effectively allowed traders to make bets on what prices would be at specified times in the future without ever owning the physical supplies that attracted speculator...
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...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
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.