The soil moisture-sapping Midwest heatwave is still ongoing, but you might not know that from the CBOT’s action on Tuesday. Both corn and soybeans – the two crops obviously most affected by the current weather – settled lower with soybeans marking a sharp selloff on the charts. Fundamental pressure came from the results of the first day of the Pro Farmer tour, where higher than expected yields were found in Ohio and South Dakota. Yields are far from certain, however, and the current heat could still have deleterious impacts. Soybeans also saw strong pressure from a technical selloff in soyoil, which put funds in a selling mood across the complex for the day. The first day of the Pro Farmer tour estimated Ohio corn y...
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.