Agricultural commodities comprise a very small share of the futures market, and derivatives are dwarfed by the $92 trillion capitalized in the equity markets. Last week was bloody but especially for the equities market. Agricultural commodities took a smaller hit because underlying assumptions about supply and demand did not change. Moreover, part of the decline in agriculture was due to the very sharp decline in petroleum (Nymex crude down 16.15 percent). This is because energy is an outsized component in many commodity index funds. Markets will inevitably rebound, though the retracement for agriculture will be less simply because the fear-based losses were smaller. ...
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...
WPI Grain Prices and Freight Rate App Note: you can also visit the app directly by clicking here. Supplemental Information The section below offers a concise view of the options available in the current version of the WPI FOB Price and Freight Rate app, along with a short “...
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.