Dodd-Frank required that the CFTC set speculative position limits for futures contracts based on physical commodities “where appropriate” in order to deter excessive speculation that might cause harmful price fluctuations. The latest manifestation of the position limit debate comes from the CFTC’s Energy and Environmental Markets Advisory Committee.The subject of limits on the size of speculative positions held in derivative markets never goes away. The Commodity Exchange Act of 1936 required that positions held by speculators in agricultural futures contracts traded at the CBOT be limited in size to forestall the kind of market manipulation that had occasionally occurred since the late 1800s. Futures markets for other physical commodities...
What You Need to Know Today: Chinese purchases of U.S. soybeans continued to accelerate, with USDA reporting another 558 KMT sold to China and 236 KMT to unknown destinations. Combined with sales announced Wednesday and Thursday, the latest purchases bring the three-day total to approximately...
As fall begins, wild migratory birds are starting their seasonal migration. That has the industry and government officials worried about the potential spread, again, of highly pathogenic avian influenza (HPAI). Some members of Congress have called for the United States to be prepared for a pote...
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.