THE OPEN May beans: 14 higher May meal: 3.20 higher May soyoil: 46 higher May corn: 8 3/4 higher July wheat: 6 1/4 higher The markets opened higher in a buy the rumor, sell the fact trade, with profit-taking from the bull side as prices opened at new market highs on USDA business confirmations. The weakest markets gave up their gains first, with corn turning mixed on the day shortly after the open, despite the first purchases from China via the Phase One deal. However, prices continued to work higher as better technicals supported values. Ags still remain highly correlated to outside markets. Falling energies once again weighed on corn and soyoil values during the session,...
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.