The CBOT was entirely red across the major ag commodities Tuesday as weak technical conditions and better than expected crop conditions pressured trader sentiment. Monday’s Crop Conditions report featured bearish surprises in that last weeks’ heatwave didn’t result in the sharp decline in ratings as expected. That may change next Monday, however, as the current weather forecast is still very hot and dry for the major crop states. Additionally, growing expectations for Russia’s wheat crop are pushing European and U.S. wheat futures lower, moves which are happily accelerated by heavily short funds. Bears were in control for the day, but one has to wonder how long that will last with this week’s heat and export in...
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.