General Comments The CME Group has agreed to buy the Kansas City Board of Trade (KCBOT) for $126 million, according to news reports today. The KCBOT wheat futures contract represents hard red winter wheat, the largest class of wheat by volume produced in the United States. However, futures trading volume in the KCBOT HRW contract is far lower than for CME's SRW contract. The CME will now control both the traditional SRW contract and the HRW contract. Presumably, the purchase includes all of KCBOT's assets, including its open outcry trading floor and its interest in the building housing the exchange. As part of the agreement, the CME has agreed to keep open the trading floor for at least six months after closing the purchase.It has been r...
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...
Key Takeaways: Argentina is on pace for a record corn crop and record exports in the current marketing year, with abundant supplies likely to keep the country highly competitive in global export markets. Argentina’s record exportable surplus is allowing it to offer highly competitive pri...
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.