The CBOT opened with a defensive tone as position liquidation/short selling continued in the soybean pit and as traders exited largely profitable wheat positions. Some buy corn/sell soybeans or wheat trade existed early in the day, but corn eventually fell lower under widespread selling and position liquidation. The coronavirus is rapidly spreading in China and is heightening market nerves around the world. Markets hate uncertainty, and the CBOT ag markets are particularly sensitive to this outbreak due to the still-uncertain effects of the U.S.-China Phase One trade deal. The weekly Export Sales report from USDA held a friendly tone for ag commodities – including an impressive (for MY 2019/20, at least) sales volume for corn...
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.