The CBOT was mostly lower on Tuesday as the strong planting progress reflected in Monday’s Crop Progress data eased many lingering concerns about the U.S. 2023 spring crop outlook (except for spring wheat). That, combined with a surprise cancellation of corn export sales, sent CBOT futures lower with funds again emerging as cautious net sellers. KCBT wheat and the livestock markets were the only major contracts to see significant gains with drought and smaller production forecasts driving the wheat market higher while better support in the cash markets supported livestock futures. It looks like this week’s pre-WASDE trade will be more volatile than usual with wide-ranging forecasts for the new crop balance sheets. Analysts and...
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.