It is Christmas Eve and U.S. commodity futures markets close 75 minutes earlier than usual. The cost of this 29 percent reduction in trading time is likely to be a drop in volume of more than 50 percent. Volume also drops in years in which the last trading session is not Christmas Eve (e.g. 2016 and 207), but by only around half as much. While the closes are generally mixed, more often than not over the past five years, the closes have involved small gains in the corn and soybean contracts, and not so much for wheat. The trade is conflicted this year in that the temptation is to book profits and exit riskier positions ahead of a long shutdown in the market. At the same time, there is a continuing bullish bent to the market and getting out...
What You Need to Know Today: President Trump claimed the ceasefire between the U.S. and Iran was over, as both sides accused one another of violating the terms of the agreement. Commercial vessels are increasingly steering clear of the Strait of Hormuz as security risks escalate following Iran...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
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.