World Perspectives

Last Laugh; Mediation over Arbitration

Last Laugh The actual language of the announced phase one agreement between the U.S. and China remains unknown but a reported commitment to boosting imports of American farm products could (speculatively) have notable side effects on infrastructure. The first involves grain handling capacity, the second involves domestic production. The Chinese government owns several key businesses in the grain handling sector. It has also made strategic overseas investments such as Syngenta and Smithfield. Sinograin and Cofco, two of the Chinese government’s largest agribusiness companies, have tended to avoid direct competition with the ABCD’s in the U.S. market but that could change.  It is reported that the Chinese government has dou...

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CFTC COT Report Analysis

Friday’s CFTC report showed managed money traders breaking a three-week trend of net short covering in the ag space as managed money traders expanded their almost-neutral positions. The expansion of short holdings came primarily from selling across the three soy complex contracts and from...

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Summary of Futures

Dec 25 Corn closed at $4.18/bushel, down $0.0175 from yesterday's close.  Dec 25 Wheat closed at $5.1925/bushel, down $0.0025 from yesterday's close.  Nov 25 Soybeans closed at $10.27/bushel, down $0.06 from yesterday's close.  Dec 25 Soymeal closed at $284/short ton, up $0.3 fro...

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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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