The impact that the state of the Chinese economy may have on its demand for physical commodities is obviously of key importance to how those products are valued. However, there may be something else brewing in that country of potentially great long-term importance for agricultural commodity trade flows and markets.China occupies a prominent place in the minds of anyone interested in commodity trading/markets and with good reason. It ranks as the top importer of a number of important commodities such as iron ore, oil, copper and soybeans. China’s combined annual imports of raw material commodities far outdistance any rivals. It is fair to say that China is a main demand side driver of price direction for world commodity markets. Just look at...
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.
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...