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feed-grains soy-oilseeds wheat

Market Commentary

Today's announcement that China had bought more U.S. soybeans had less influence on price than prudent action. General Comments It is stating the obvious to say that futures markets are dependent upon expectations, and changing expectations influence the price of futures contracts. There has been a common expectation the past couple of months that the January yield estimates for corn and soybeans will continue to increase in USDA data that will be published on Friday, 10 January. During that same two-month time period, there has also been no real, offsetting bullish news. Instead, China made some major cancellations of U.S. corn, and EPA restrained the ethanol mandate. In relation to soybeans, South American soybean acreage seems to have...

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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.

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