Friday’s CBOT trade featured a late-week rally with wheat leading the way as traders now seem to believe that the April rains in the Southern Plains were insufficient to significantly benefit the HRW crop. KCBT futures posted 30+ cent gains for the day and corn and soybeans followed through with ample technical buying in their own right. Funds were net buyers for the day and covered some of the short positions they’ve recently built or expanded in the major ag products. The May WASDE next Friday will now be the market’s primary focus with the report expected to be bearish new crop corn and soybeans (and likely old crop corn too) while being bullish new crop wheat. The weekly CFTC report was in-line with expectations...
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...
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.