After sharp rallies Monday and Tuesday, traders booked CBOT profits on Wednesday heading into Thursday’s Goldman roll and CONAB report and the USDA April WASDE on Friday. Trading volume was light but, for the day, funds were net sellers and bear spreaders. Brokers estimate funds sold 5,000 contracts of wheat, 8,000 contracts of corn, and 6,000 contracts of soybeans. South American weather trends are turning against the development of Argentina’s late-planted corn and Brazil’s safrinha corn crop. Temperatures this week will be hot across basically everything south of Mato Grosso, except Uruguay and Rio Grande do Sul, while central and northern Brazil remain drier than normal. The 6-10-day outlook features cooler temp...
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.