General Comments The CME markets are beginning to recognize that the problem of low water in the Mississippi River and probable restrictions on draft are likely to disrupt barge traffic, which could have direct and indirect implications for grain and soy futures contracts. The most direct implication is that it may be difficult or impossible for a taker of delivery to load out anything from delivery points south of St Louis. That could restrict deliveries on corn and soybean contracts. CME officials are aware of the impending problem, but will not make any contract changes. The indirect implications mostly involve spreads. But whether draft restrictions would widen or narrow spreads would depend on the precise circumstances, and it is th...
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.