The CBOT turned higher overnight after late Tuesday announcement of a China/U.S. meeting in Switzerland to discuss tariffs and reduce trade tensions. The first step in what is likely to be a prolonged process was welcomed by the industry as it at least shows a willingness from both parties to try and reach a deal. Too, traders were encouraged after Mexico’s ag minister said on Tuesday he reached agreements with USDA Secretary Rollins in a “friendly” meeting in Washington. The overnight strength was the only meaningful higher trade the CBOT was to see for the day, however, and markets broadly pulled back through the day session. Wheat, corn, soyoil, and even all three livestock markets settled lower for the day with f...
What You Need to Know Today: Last week’s Trump-Xi meetings included China agreeing to roll back $60 billion in tariffs on a huge swath of U.S. ag products, just notably not soybeans. The exclusion of soybeans from the tariff-reduction list means China’s state-run importers COFCO an...
Mexico Trade Deal The Trump Administration is looking for a win before the November midterm elections, now just five weeks away, especially as trade relations with Canada worsen and there is now a truce with China. The U.S. has made it clear to Mexican officials that it wants a deal with Mexico...
Key Takeaways: The U.S.-China agreement lowers tariffs on several U.S. agricultural products, but the lack of additional soybean commitments or greater certainty surrounding China’s existing 25 MMT purchase pledge made the deal a slight disappointment. Lower tariffs on U.S. corn are unli...
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.