The CBOT was lower again at mid-week with funds continuing to pare back long positions amid a light news day. The U.S. weather forecast has shifted to feature more favorable planting conditions for most of the Midwest and Northern Plains in the next few weeks, which helped pressure corn, soybeans, and spring wheat for the day. Brazil’s looming safrinha crop continues to drive much of the market’s price action with better/worse forecasts pushing corn futures to and fro. Similarly, inexpensive wheat from the Black Sea undermines U.S. and other world exporters’ prospects and wheat futures were lower on rumors that U.S. firms may have booked some wheat from Europe for delivery to the Atlantic Coast. Funds were net sellers for...
What You Need to Know Today: Market attention is shifting toward Tuesday’s USDA WASDE report, with analysts anticipating a modest reduction in U.S. corn production estimates and an increase in soybean production. The report could provide fresh direction for grain markets as traders reass...
Key Takeaways: WPI’s forecasts call for physical U.S. soybean crushing margins to weaken over the next four months and average $4.44/bushel by late February, while CBOT futures margins should rise modestly to about $2.40/bushel. A key catalyst for this is the expectation that U.S...
Regional News Black Sea trade dynamics remain central to European wheat and corn pricing, with the reported 26 percent increase in Ukraine’s October grain shipments adding pressure to markets. Concurrently, markets are waiting for the scheduled trilateral peace talks between the U.S...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.