The bull market in Chicago continues with no end in sight. Each day that affirms excessively dry weather in South America coupled with signals of strong Chinese demand looks to drain down available stocks. From a technical standpoint, the momentum of recent price gains signals the market being overbought. The caution is that because of the human element, pricing tends to overshoot both to the lower and higher levels. Corrections can also involve oversold conditions. At present, soybeans have hit an important psychological level and corn is not far behind. The last time soybeans went over $14/bushel was in 2014 and the last time corn exceeded $5/bushel was in 2013. Beans in the teens is a cute market comment but it is also a significant thr...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
We have described the long-term investment climate in crop and livestock production, using data primarily from the Bureau of Economic Analysis (BEA). The data provided background on the current investment climate and outlook for agricultural capital formation. Our conclusion was that investment...
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.