The CBOT feature one-direction trade at mid-week – lower – with funds continuing to rapidly exit long positions in the grain markets and/or pile into newly profitable short positions. While technical/fund selling drove most of the day’s price action, bearish fundamental factors were also at play. First, rumors broke early in the day that Russia and Ukraine agreed to a new export corridor deal, rumors that were later confirmed. Second, the U.S. dollar rose for the day and pressured wheat and, to a lesser extent, soybean futures as U.S. export competitiveness waned under the rally. Finally, with the exception of North Dakota, the U.S. weather patterns look nearly ideal for planting the 2023 spring crops and for their develop...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
Yesterday we wrote about the Q1 GDP numbers and the June employment reports in an article entitled Real GDP for Q1 Relying on AI Buildout, Held Back by Consumer Spending. That article mentioned that consumer spending had become a drag on GDP. Nonetheless, real GDP in Q1 was revised upward to 2...
Key Takeaways: The Middle East and North Africa's arid climate and limited water resources have created a structural dependence on imported wheat. Government wheat tenders in major importing countries serve as important benchmarks for global trade, providing insight into exporter competitivene...
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.