The CBOT reversed course from its recent grains-rally-soy-complex-declines playbook as a (minor) thaw in Russia-Ukraine/NATO political tensions sent wheat lower for the day. Paris wheat led the way lower early Wednesday and all three classes of U.S. wheat futures followed suite. In contrast, the soy complex rallied sharply with 30+ cent gains in soybeans as news of worse-than-expected soybean yields in Brazil hit the market. Corn was, for the day, caught between the two influences but bull spreading and strong commercial demand helped push the feed grain higher for the day. Funds are thought to have bought some 15,000 contracts of soybeans today along with a modest 8,000 contracts of corn. Managed money sold some 12,000 contracts of...
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.