World Perspectives
wheat

Price Risk and World Wheat Trade: Part II

Can a commercially useful world wheat contract be created? It would have to be a contract that attracted widespread commercial participation from buyers and sellers and with a consistent level of trading volume large enough to appeal to speculative interests as well.The difficulty of hedging or offsetting price risks involved in the world wheat trade was emphasized in this Common Thread spot a week ago. It was pointed out that trading volume in Chicago Mercantile Exchange (CME) wheat futures contracts representing U.S. soft-red winter wheat (SRW) exceeded that of any other wheat futures market in the world by far. The CME’s SRW wheat contract is where speculators in wheat go to play, and it attracts the largest trading volumes and liquidity...

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Usually, the day USDA releases its monthly world supply and demand report – known colloquially as “WASDE day” – sees heightened volatility in CBOT ag futures. That was true again Tuesday, though there was little causal connection between the WASDE and the market’s...

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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.

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