Today’s CBOT trade was all about the WASDE with markets trading quietly lower before the report’s noon ET release. The report, while mostly in-line with expectations, elicited a swift, selloff reaction from the markets after its release, as the USDA increased ending stocks for all the major U.S. commodities. That selloff was subsequently reversed in soybeans due to the effects of drought in Brazil and Argentina and the corn market similarly pared its losses such that old crop futures ended 1-2 cents lower. Funds were modest net buyers in the soy complex and net sellers in wheat, but the CBOT is apt to remain range-bound going forward while additional clarity comes regarding the South American crops. The January WASDE was...
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.