Last week’s CBOT trade rightly featured significant rallies as the U.S. weather forecast remains stubbornly hot and dry in both near- and long-term forecasts but today’s trade featured a pause amid the drought-concern rally. Futures were somewhat overextended after last week’s gains and traders elected to assess the situation and see if this week’s weather remains hot and dry before adding more “weather risk” premia to prices. As such, one might call the day’s session the calm before what is likely to be another drought-induced weather market rally. Funds were cautious net buyers in corn, old crop soybeans, and SRW wheat while selling small volumes of KCBT and MGEX wheat and soy products. The...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
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.