The CBOT flinched early as USDA announced that China cancelled 140,000 MT of corn export bookings from the U.S., but later rallied on strong cash markets and fund buying. Bear old crop/new crop spreads were a popular trade on Wednesday with traders taking advantage of the huge inverse in the corn, soybean, and soyoil markets. Funds are thought to have bought 10,000 contracts of wheat while being slight net sellers in corn and soybeans. Looking ahead, WPI expects the CBOT rally to continue into and possibly through the U.S. 2021 growing season. Old crop corn and soybean supplies are tight and Chinese demand has not slowed as much as might be expected given this year’s rally. The market’s immediate focus is on the fin...
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.