Who Takes the Long Side? It is too often unclear whether commentary from politicians is based on the required expediency of their craft, or reflects actual economic ignorance. We always fear the latter. Either way, they act as opinion leaders so that the net effect all too often is the spread of ignorance to the masses. The phrase "addicted to oil" for example, is catchy but a deeply flawed description of the economic dynamic. Drivers do not have a compulsive psychological need for gasoline; it is simply the lowest cost, concentrated and portable energy source available.For the past few years, politicians like Presidents Sarkozy and Obama have made speculators their scapegoats for higher food and oil prices. As Senator Byron Dorgan (D-No...
Key Takeaways: President Trump announced $8 billion in additional agricultural assistance through the Harvest Fuel Relief Program, as USDA projects farm fuel and oil expenses will increase 28.8 percent in 2026. The package follows $12 billion in earlier relief, while government farm payments w...
Key Takeaways: A student group from the University of Chicago is protesting to bring back onion futures trading. Trading in onion futures was banned in 1958 following a spectacular bout of market manipulation that resulted in a corner of the physical market. The ban on onion futures led t...
Beef packer margins deteriorated to $141/head last week, down $55 from the prior week as fed cattle prices strengthened while the Choice cutout remained nearly unchanged. The cutout held near $373/cwt while fed cattle prices climbed $4/cwt to $224/cwt, narrowing processor profits. Despite the d...
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.