The CBOT saw wheat emerge as the upside leader for the day with multiple bullish stories offering support, including one from Reuters that indicates Russia may be considering a ban on grain exports. Details are nonexistent, but there is reportedly a meeting soon between the ag ministry and grain traders to “discuss” a possible ban. That, combined with global weather issues and a 1-MMT cut to Argentina’s wheat crop forecast, put wheat in the green for the day. Corn and soybeans tried to follow but, lacking any bullish story(ies) of their own, such attempts failed and markets slid lower. Funds were slight net sellers in corn and the soy complex while still covering shorts in wheat. Pre-WASDE trade and position evening, of co...
What You Need to Know Today: Market attention is shifting toward Tuesday’s USDA WASDE report, with analysts anticipating a modest reduction in U.S. corn production estimates and an increase in soybean production. The report could provide fresh direction for grain markets as traders reass...
Key Takeaways: WPI’s forecasts call for physical U.S. soybean crushing margins to weaken over the next four months and average $4.44/bushel by late February, while CBOT futures margins should rise modestly to about $2.40/bushel. A key catalyst for this is the expectation that U.S...
Regional News Black Sea trade dynamics remain central to European wheat and corn pricing, with the reported 26 percent increase in Ukraine’s October grain shipments adding pressure to markets. Concurrently, markets are waiting for the scheduled trilateral peace talks between the U.S...
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.