The last trading day of January saw a continuation of the story that sparked the 2020/21 bull market: Chinese buying. News of a massive corn sale to China sent corn futures to a new contract high and a bullish upside breakout while wheat and soybean futures traded mostly sideways in their respective trading ranges. Funds were net buyers in corn, wheat, and soybeans while aggressively shedding the longs they obtained earlier this week in the cattle markets. China bought 2.108 MMT of 2020/21 corn yesterday, which is the largest daily corn export sale since a 3.7-MMT sale to the USSR in 1991! USDA also reported that China secured 132,000 MT of soybeans for 2020/21 delivery. Today’s daily export sales announcement brings China&rsqu...
From WPI Consulting
Illuminating the value of technical research
On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.