As noted last week, WPI is starting a new weekly report on the IV “smile” of nearby corn, soybeans, SRW wheat, and live cattle futures. Our goal is to give you, near the start of the trading week, an idea of how the market believes futures prices will behave in the near future. If you like it this idea and the information below, let us know! Here are this week’s charts: Corn Much like last week, the options market appears to be bracing for higher corn prices. The IV on OTM calls approaches 35 percent of higher while OTM puts presently peak at 32 percent IV. Additionally, larger call OI exists for corn options, placing the put/call ratio at 0.75. Near-term fluctuations are likely, but the long-term trend for...
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.