Higher soyoil prices defined post-Christmas trade early in the day but rising wheat values caught the market’s attention by the end. Palm oil futures were higher overnight, which helped soyoil gap open and jump to new highs for the move. Buy soyoil/sell meal trade developed and soyoil strength spilled over into soybeans as well. The first notice day for January futures contracts is 31 December, meaning some rolling from January contracts into deferred futures was also present. The weekly EIA ethanol production/stocks report, as well as the USDA Export Sales report are delayed until tomorrow due to yesterday’s holiday. The EIA report is expected to show mostly steady production and stocks values. Outside markets are...
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.