Without a pipeline into the thinking of fund managers who have decided to re-enter the long side of the agricultural futures market in a major way, even after their unhappy experiences of the past two years or so, one can only speculate as to what is behind this move.As noted here several times recently, managed money pools, commonly referred to as funds, have begun to return to the long side of agricultural futures markets. The latest weekly Commitment of Traders (COT) report from the Commodity Futures Trading Commission (CFTC), released 17 February, showed the extent to which these funds have re-entered the grain and soy futures markets. It noted that as of 14 February, managed money pools were carrying the following aggregated futures on...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
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.