The CBOT and CME markets were sharply lower to start post-Labor Day trading with the ongoing export closure at the U.S. Gulf weighing on grain markets. The Gulf closure is pushing basis levels sharply lower across the country and futures markets are having to adjust accordingly. A combination of long liquidation on good weather and the approaching harvest also kept grain markets on the defensive. In livestock markets, cattle futures imploded as technical weakness and fund liquidation are accelerating following a recent, sustained bull market. Funds were net sellers today, liquidating some 25,000 contracts of corn and 15,000 contracts of soybeans and 6,000 contracts of wheat. Funds were more measured sellers in soyoil and soymeal, liq...
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.