The CBOT was higher to end the week with short covering and modest fund buying occurring ahead of the three-day weekend. Trading was generally slow, and volumes were light as few are looking to add risk heading into a weekend where a possible Russian invasion of Ukraine will be the focus. Tensions are growing in eastern Ukraine as ethnic Russians are provoking the issue with a car bomb that was detonated Thursday evening. There has been speculation that Russia will use instability in Ukraine (instability that it is largely creating) as an excuse to invade the country. Heading into the weekend, funds are thought to have bought 5,000 contracts of wheat (mostly HRW) along with 8,000 contracts of corn and 6,000 contracts of soybeans. Mar...
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.