Earlier this week we declared 10 June to be National Swaps Day. Banking institutions that are not otherwise considered swaps dealers or major swaps participants had to clear swaps transactions through an officially designated organization by that date. By bringing banks, including U.S. branches of foreign banks under this requirement, the large majority of the formerly unregulated over-the-counter (OTC) U.S. swaps market must now be cleared through a CFTC-approved and regulated clearing facility. This "sea change" for the OTC swaps market fulfills a provision of the Dodd-Frank financial reform legislation. This clearing requirement goes along with another requirement that swaps with similar characteristics must also be transparently trade...
What You Need to Know Today: U.S. weather is getting more attention this week as conditions vary greatly across the western, central, and eastern corn belts, with the different regions battling dryness and too much rain simultaneously. The ProFarmer Crop Tour began today in Indiana and Nebrask...
Unlike the 2022 fertilizer shock, today’s disruption is rooted less in rerouted trade flows and more in damaged production capacity, raw material constraints and uncertain recovery timelines. That makes this a longer-duration risk for U.S. agricultural producers and retailers who must sec...
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.