The CBOT continued most of the trends that developed yesterday with funds remaining net buyers in corn, wheat, and soybeans. Grains, especially wheat, led the CBOT to the upside while soybeans were mostly along for the ride. Soymeal and soyoil reversed their recent roles, with soyoil gaining on meal as spread trade accelerated. Cattle futures turned around from yesterday’s selloff while the hog market continued to dive lower. Market news is somewhat light these days with farmers focused on harvest and, per WPI sources, making little progress on marketing grain. The U.S. weather is less than ideal for harvest this week with a wet, cool pattern setting up across the Midwest, especially the northern areas. In the two-week forecast...
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.