Concerns about inflation exceeding transitory terms have increased in recent days but it was reported yesterday that inventories of consumer goods have started to increase, which will both boost GDP and temper prices. This follows increases in off-loading containers at east and west coast ports. Of course, commodities may be a hedge against inflation, but it is argued that the correlation between the two has declined over the years. But the correlation between the U.S. corn price and inflation increased from 2008 going forward (see graph below). Typically, the larger focus for U.S. owners of agricultural commodities is on the value of the dollar. Since 25 May, the dollar index has risen 5.3 percent. It is still below the peak it hit...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
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.