Traders adopted a “risk-on” mentality the day after the November WASDE with wheat playing the role of the upside leader. While soybeans received a surprise bullish jolt yesterday from the WASDE, today was all about wheat and the reminder that world supplies remain tight this year. Funds were net buyers across the major ag products Wednesday, securing 12,000 contracts of corn, 9,000 contracts of wheat, and 4,000 contracts of soybeans. Managed money funds and index funds both seems to be adding commodity exposure amid a strengthening inflation outlook, which will help put a floor under the CBOT heading into the New Year. The Brazilian government is expected to decide Thursday whether it will approve drought-tolerant G...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
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.