The CBOT opened and traded higher once again on Wednesday, with December corn, January soybeans, and December soyoil all posting fresh contract highs. For soyoil, the technical victory was even greater as the market posted its highest close since 2014. Funds remain net buyers and the fact that the latest CFTC data showed them holding a smaller-than-expected long position is fueling additional buying. The soy complex is locked in a bull market trying to ration demand, while corn is supported by solid demand and wheat is along for the ride. So far, none of the major CBOT markets has shown signs of forming a top or reversal. WPI cautions that the soy complex is overbought presently, which may spark some profit taking soon. Fridays tend...
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.