China, Russia, and Brazil are not the only entities betting against the U.S. dollar. The Invesco DB US Dollar Index Bullish Fund peaked last October at 30.36 and has fallen 8.6 percent since then. The opposite bet, the Invesco DB US Dollar Index Bearish Fund is up 11 percent over that same period. The dollar index generally follows interest rate differentials, and the Federal funds effective interest rate is likely to climb over 5 percent as of tomorrow’s Federal Reserve Bank announcement. It was nearly 40 percent lower last October. So if the interest rate is rising, why are speculators expecting a decline in the dollar’s value? The dollar valuation may have eased or reversed as speculators watch the Fed slow the pace of inter...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
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...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.