With yesterday’s trade showing reversal signals in soybeans and soymeal, the CBOT was called to open higher this morning, which is largely what happened. Short covering developed in corn and soyoil while soybeans found less-than-expected follow through buying from yesterday’s reversal. The wheat market ground lower with fresh bullish news being hard to find. Funds are thought to have bought some 7,500 contracts of corn, 2,000 contracts of soybeans, and 2,500 contracts of wheat. Funds remain notably absent from the livestock markets. USDA’s monthly Cold Storage report did not show a dramatic drawdown in meat and poultry stocks after Americans stocked up on groceries amid COVID-19 quarantine and stay-at-home orders. T...
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.