The CBOT and CME markets were almost unanimously lower to start 2023 with demand – either from exports or domestic consumption – being a primary factor for the day’s declines. Last week saw strong rallies in several markets, including corn and the livestock contracts, but those moves failed to attract much fund buying interest this week. Outside of the weather and supply potential for South American crops, January is a quiet period in the commodity market news cycle, and demand (i.e., exports) and seasonal patterns take on a greater influence. Seasonally, grain markets tend to grind higher into the spring and Tuesday’s start-of-the-year weakness could just be a temporary setback. For that to be true, however, grain e...
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.