Yesterday’s 3 percent decrease in corn conditions ratings spooked corn bears and prompted a notable round of short-covering at the CBOT, both in the overnight session (where corn, soybeans, and Chicago wheat all ended ~5 cents higher) and the day session. The market’s move higher was helped at mid-day by a newswire that suggested China will return to purchasing U.S. agricultural products, presumably in the near-term. The news was cited as an effort to thaw political tensions ahead of the pending U.S.-China trade negotiation meetings in October. U.S. soybeans are a comparative bargain versus Brazil and Argentine-origin product, but China is still more likely to secure pork and beef. Chinese officials have indicated...
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.