Those who trade in grain and soy complex derivatives are very familiar with speculative position limits. There have been such limits in place since the 1930s. However, many other commodity markets are looking at these for the first time.In their zeal to curb so-called excessive speculation in derivative markets, lawmakers included language in the 2010 Dodd-Frank market reform legislation that directed the U.S. Commodity Futures Trading Commission (CFTC) to establish speculative position limits for exchange-traded and over-the-counter (OTC) derivatives for some 28 different physical commodities. In the wake of the 2008/09 financial crisis and the commodity price volatility that occurred before and during this event, many politicians were qui...
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.