Wheat has attractive prospects for 2016, but today's close of the December Chicago SRW contract back below the physiologically important level of $5.00 seems somewhat of an ominous indicator against buying prematurely. General Comments Money management is temporarily the dominant price-influencing factor in Chicago grain futures. There is little reason to discuss other influences of secondary importance because that is poised to dictate price action for the next few days, which is likely to be lower.The December corn contract appears to have declined low enough when all other factors other than money management are considered. However, that cannot be left out of the equation, and it substantially increases the probabilities that corn will...
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.
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Inflation is back in the driver’s seat, and agriculture is getting pulled in two directions. A stronger dollar is pressuring grains despite fresh Chinese buying, while renewed Middle East attacks lift crude oil. Higher energy prices can support commodities, but they also raise expenses an...