Friday’s trade was less about grain market fundamentals than it was “risk off” trade from a meltdown in financial and energy markets. The U.S. dollar rose 160 bps for the day, which pressured grain futures from an export competitiveness standpoint and corn, wheat, and soybeans all posted 1.7-3 percent losses. Neither corn nor wheat nor soybeans broke their major technical support or resistance planes, however, which suggests next week’s trade will likely see a return to trading based on grain market fundamentals. The weekly CFTC report showed funds expanding their long positions in soyoil, soymeal, and corn while covering another 4,500 contracts in their short SRW wheat position. Funds were net sellers of soyb...
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.