World Perspectives
softs

Blame the Rice Boogey Man

Rice is the top staple food crop in Asia and the third largest global crop after corn and sugarcane. When rice production is in trouble, people pay attention. This year’s crop is suffering from flooding in Thailand, the sixth largest producer and second largest exporter. Plus excess rain in India, the second largest producer and largest exporter. Some are blaming climate change and demanding compensation from rich country emitters. This requires ignoring several factors including: India is a fast-growing emitter of greenhouse gas emissions and unlike the U.S., EU, or China, has no plans for reducing them. This is still the third largest Indian rice crop in history, and the fourth largest level of ending stocks.  India’...

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CFTC COT Report Analysis

The big surprise in the CFTC report was that funds, through Tuesday last week, did not exit as much of their long corn position as previously thought. Expectations were for funds to have pared that position back to about 125,000 contacts, instead they shed just 7,800 contracts (4.8 percent) and...

softs

Cocoa Market Outlook: Futures Overbought but Demand Rationing to Continue

The 2024/25 cocoa market outlook is dominated by production concerns and continuing tightness in global stocks-to-grindings levels. The latter point will likely keep futures and physical prices elevated as the market works to ration demand amid a fourth straight year of weak production from Wes...

feed-grains soy-oilseeds wheat

CFTC COT Report Analysis

The major theme of the latest CFTC report is that funds continued to build length in the corn market on strong export demand and added length to seasonal record-setting long positions in livestock futures. Funds added more than 92,000 contracts to their net corn long, increasing the net positio...

feed-grains soy-oilseeds wheat

CFTC COT Report Analysis

The big surprise in the CFTC report was that funds, through Tuesday last week, did not exit as much of their long corn position as previously thought. Expectations were for funds to have pared that position back to about 125,000 contacts, instead they shed just 7,800 contracts (4.8 percent) and...

softs

Cocoa Market Outlook: Futures Overbought but Demand Rationing to Continue

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CFTC COT Report Analysis

The major theme of the latest CFTC report is that funds continued to build length in the corn market on strong export demand and added length to seasonal record-setting long positions in livestock futures. Funds added more than 92,000 contracts to their net corn long, increasing the net positio...

soy-oilseeds

Wasde Soybeans

WASDE Soybeans: 2024/25 U.S. soybean supply and use projections are unchanged. There was a significant increase in soybean oil exports by 500 million pounds to 1.1 billion. However, that increase was partly offset by reduction in food, feed, and other industrial use of soybean oil by 200 millio...

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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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