World Perspectives

Ephemeral Market Reaction

Markets reportedly reacted today to the U.S. killing of Iranian Maj. Gen. Qassim Suleimani by falling in values and the price of oil rising. However, it is a classic example of a knee-jerk reaction. Middle East tensions run through the region’s history with the larger events in recent decades being wars in Iraq and Afghanistan.  Perhaps the most uncertain period of time was 2001 through 2004. However, during that period the relative values of major agricultural commodities remained tied to fundamental supply and demand (see table below). Thus, the market reaction to today’s news is ephemeral and far less important than next week’s WASDE report. As WPI’s Jody Lefcourt framed it, the news today was simply a prete...

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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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