Last year, the value of oil, energy, and agricultural commodities all fell. This caused reduced earnings at some large trading firms but, according to McKinsey, overall earnings in the sector rise at an average 1.5 percent per year and reached $104 billion last year. The value was sufficient to entice new players (banks, hedge funds, tech focused operators) into the market. The question for all firms, including from the hotseat of an AI operation, is always the same - where is there arbitrage opportunity? That is a dirty word (opaque, unearned) for those that do not understand how this reduces volatility. However, McKinsey points out that the threat of volatility is increasing due to rising geopolitical risks (Ukraine-Russia, China, Israel...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
Key Takeaways: Peace at last in the Persian Gulf? Over the weekend, the U.S. announced and Iranian officials confirmed a peace agreement, with formal ratification set for Geneva on 19 June. The announcement means the Strait of Hormuz is set to reopen fully and toll-free within 30 days.&n...
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.