The strategy of buying a futures contract in a nearby time frame, then selling it just before that contract expires and replacing it by purchasing a more deferred contract at a lower price is a part of Trading Market Spreads 101.We read with interest and some bemusement one of the lead articles in the Money and Investing section of yesterday's Wall Street Journal (WSJ). It was entitled "Winning by Waiting in Commodities," and the author was Tatyana Shumsky. The article describes a strategy for profitable trading in commodity markets that, according to the author, has caused some fund managers to start investing in commodity markets once again after having deserted them in 2013 in favor of more attractive homes for their managed money. Basic...
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.