To say that weather markets are unpredictable is to state the obvious, but today’s whipsaw price action carried that to an extreme. Soybean futures prices roared up and down a few times as funds tried to keep ahead of each weather model run today. General Comments To say that weather markets are unpredictable is to state the obvious, but today’s whipsaw price action carried that to an extreme. It also demonstrates another change from days gone by, that of computerized algorithmic trading programs that basically plug into weather model servers to catch and instantly trade on any changes between model runs. The algorithmic traders were hard at work beginning overnight and continuing during the day session, and they probably were largely res...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...
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.