The market was called lower and it opened that way but then spent the rest of the session trading both directions before closing mixed. The mindset was to be lower based on COVID shutdown fears, but the USDA Export Sales report evidenced ongoing demand. Fundamental S&D has not changed. Lockdowns affect macros but commodity disappearance not so much, especially not now that the supply chains are experienced at managing it. However, a lockdown could affect things like ethanol demand, which has just started to recover along with production. The market should have hit lows today as demand prevents further bleeding. The up and down of the market today showed a search for the top and bottom; the greater proximity toward the bottom will attrac...
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.