Soybean and product prices moved lower overnight while grains climbed higher, reversing yesterday’s pattern of direction. The volume of trade was notably higher than during recent overnight sessions, probably in response to a sharp decline of the U.S. dollar against most other major currencies. CME open interest (O/I) in corn increased by 22,088 contracts. It was little changed in soybeans, but O/I in soymeal jumped almost 8,000 contracts. O/I in the two winter wheat markets also increased roughly 8,000 contracts each. It appears that while noncommercials were not afraid to add to their large short positions in corn and wheat, they took on more soymeal as a hedge against drought-related Argentine crop losses. The rationale is that wit...
From WPI Consulting
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.