SPREADS Bean futures are still mostly about volumes going to spread trade, with January open interest down 17,339 ctrs and March up 15,796 ctrs. Open interest decreased slightly in May and July indicating only a small amount of liquidation has taken place. Jan/March bean spread trades from 13 1/2c out to lows of 14 1/2c. Dec/March corn trades from 8 1/2c to 10c as futures prepare to expire in Dec today at noon. Jan/March meal trades out to $4.40 from $4.20. March wheat/corn trades from 1.51 1/2c down to 1.47 3/4c. March crush is lower trading to 99.57c/bu while oilshare firms to new highs at 35.25%. PALM OIL Feb. down 38 ringgits. Malaysia raised their export tax on crude palm to 5% (from z...
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.