World Perspectives
soy-oilseeds

Soybean End-User Hedging Strategies

The probability is increasing for soybean prices to establish a long-term low during early 2019. End-users are encouraged to utilize any such price decline into new contract lows to extend hedges. The following analysis highlights reasons for a near-term sell-off in soybean and why the current full-carry pricing structure is no justification to continue hand-to-mouth procurement.  U.S. trade negotiators seem hopeful that the Chinese will soon accept U.S. trade terms, a fact which would ideally result in added U.S. soybean purchases, or perhaps even stimulate Chinese buying that exceeds prior consumption patterns. That optimistic expectation seems common among American grain market participants. However, traders and politicians (inclu...

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feed-grains soy-oilseeds wheat

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feed-grains soy-oilseeds wheat

Market Commentary: Corn Firm, Bean Weak, Weak Wheat Rebound

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feed-grains soy-oilseeds wheat

Summary of Futures

Mar 26 Corn closed at $4.445/bushel, up $0.04 from yesterday's close.  Mar 26 Wheat closed at $5.0775/bushel, up $0.015 from yesterday's close.  Jan 26 Soybeans closed at $10.5225/bushel, down $0.06 from yesterday's close.  Jan 26 Soymeal closed at $298.4/short ton, up $0.2 from...

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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.

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