Soybeans Market Overview Chinese soybean demand remains slow, causing Brazilian basis to drop last week. Several exporters with long positions for nearby shipments forced basis lower, but there was no demand. Offers on CNF basis were at 285-290F early last week and finished at 275F with no bids. Trading houses believe China still has room to purchase December positions and is very open for January. Nevertheless, the Chinese won’t buy at this time because domestic crush margins are at zero based on CNF prices. Therefore, they will wait until that basis falls further to ensure a profit. Brazil The CNF market remains inverted for November/December, January, February, and March. This inverse used to extend until April positions, but t...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...
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.