Soybean futures and the broader soy complex saw heightened volatility this week on a combination of domestic and international demand drivers. Following these moves, it is relevant to examine what seasonal pricing patterns suggest for the futures market, as well as what the implications are for soybean crushing margins. WPI’s models indicate that U.S. soybean and soyoil prices are overvalued at current levels, with increasingly attractive downside opportunities. Soybean crushing margins are, in light of global supply and demand dynamics, expected to see some near-term weakness before resuming their existing upward trend. Anyone connected to the commodity markets is undoubtedly familiar with the volatility that has engulfed the s...
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.