Reactions to news headlines dominated Tuesday’s commodity trade with markets selling off in defensive, risk-off price action. As is discussed in more detail below and in nearby pages, bearish news hit the markets from the overnight collapse of a bridge in Baltimore, Maryland that closed the city’s port and from confirmation that Highly Pathogenic Avian Influenza (HPAI) has crossed from birds to mammals, specifically dairy cattle in Texas. This prompted a sharp wave of selling in cattle futures and the broader economic and export concerns from the Port of Baltimore closure pressured grains. Funds were aggressive net sellers in the cattle markets and added to shorts in the grain complex ahead of this week’s USDA reports. Hi...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on July 1. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
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.