The CBOT pushed higher overnight with corn notching a new four-month high and wheat futures extending their rally, but that strength quickly faded during the day session. One of the biggest drivers for the day’s declines was the failure of used cooking oil to be included in the Biden Administration’s list of new tariffs on Chinese products. That caused a sharp selloff in soyoil and dragged soybeans lower as well. Additional weakness came from upward revisions to the Brazilian corn and soybean crops from Conab, and from better-than-expected progress in Monday’s Crop Progress/Conditions reports. Funds were light net sellers for the day but were generally reluctant to add much back to the short positions they just recently ex...
Macro: Trade Flows Set the Tone Persian Gulf crude flows appear to be improving, with anecdotal estimates suggesting as much as 7–8 million barrels per day may now be leaving the region — nearly double the mid-July pace. That helps explain why crude has not maintained the full geopo...
Key Takeaways: The Panama Canal traded at a record $5.3 million for a transit slot this week as line-up times extend to 17 days. The difficulties transiting the Canal are supporting the PNW/Gulf spread. Tanker freight markets remain elevated as the blockade in the Strait of Hormuz continues. I...
Key Takeaways: Ethanol margins continue to retreat from recent highs as rising costs – particularly corn and natural gas – offset gains in ethanol and DDGS values. WPI’s models expect ethanol margins to broadly follow their seasonal pattern, declining into the new year,...
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.