World Perspectives
softs

Cotton Beats Wheat

There is much consternation over the fact that global stocks-to-use in wheat is down to 12.5 percent and as a result, the price of the March SRW contract is up 65 percent. Yet the price on the December cotton contract is up 120 percent from its low. Cotton is not essential for the food supply and the global stocks-to-use is over 70 percent, which is higher than it was just a few years ago. Instead, what is happening in the cotton market is politics. Major fashion retailers will not buy cotton from Xinjiang Province in China out of fear of a consumer backlash on behalf of the oppressed Uyghur people. China’s stocks-to-use for cotton is over 90 percent but purchasers have instead been waiting for a late harvested U.S. crop and where...

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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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