The Market After hitting a new contract low yesterday, the trade took July soyoil up nearly 2 cents today and closed out the week with a 3.1 percent rise to 44.44 cents/pound. July soybeans added 4 cents or 0.32 percent for the week, and July soymeal lost 0.08 percent to close out the week at 371.9/ST. This was despite mostly bearish numbers in today’s USDA May WASDE report (see below). Soybeans were in the green before the report and may have been helped above the 100-day MA by USDA’s 2.1 percent reduction in 2023/24 global ending stocks. Also, the trade remains concerned about the impacts in Brazil from all the flooding. It is less clear why the market increased the new crop November contract by 0.4 percent this week t...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
Yesterday we wrote about the Q1 GDP numbers and the June employment reports in an article entitled Real GDP for Q1 Relying on AI Buildout, Held Back by Consumer Spending. That article mentioned that consumer spending had become a drag on GDP. Nonetheless, real GDP in Q1 was revised upward to 2...
Key Takeaways: The Middle East and North Africa's arid climate and limited water resources have created a structural dependence on imported wheat. Government wheat tenders in major importing countries serve as important benchmarks for global trade, providing insight into exporter competitivene...
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.