After Wednesday’s WASDE-induced selloff, the CBOT started lower in tentative trade overnight but that move quickly found support and markets turned higher early in the day session. The seeming catalyst was the realization that USDA’s July corn and soybean yield estimates are still far from certain and, as will be discussed in more detail later, are under increased threat from the current weather outlook. Consequently, traders are no longer as convinced that the larger carry-out implications of the July WASDE will remain true in September and October. That created a strong bit of short covering and some cautious long buying, with funds emerging on the long side of the market again. Also looming in the back of the market’s m...
What You Need to Know Today: There has already been a strong run of flash soybean sales announcements in recent weeks, but more than 1.4 MMT reported this morning is an exceptionally large single-day total with major implications for the market. If the sales to China and unknown destinations w...
On Friday, at 6:57 AM, President Donald Trump announced, via a social media post, a 90-day window during which up to 300,000 metric tons of product for ground beef could be imported outside of tariff-rate quotas—a move aimed at bringing down costs for American consumers. This is the secon...
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.