The CBOT ended the week with fireworks as the Grain Stocks, WASDE, and winter wheat seedings reports all contained significant surprises. The surprises were decidedly on the bearish side for corn and soybeans, which prompted large selloffs in futures with corn hitting a new contract low for the day. Wheat saw a more mixed set of reports with bearish stocks, ample global export competition, but smaller-than-expected 2024 planted acreage. Wheat futures ended lower, however, due partly to spillover selling from corn and soybeans. The day’s action puts corn on a decidedly lower trajectory while soybeans, looking mostly bearish, posted some interesting signs of support as well. Funds were net sellers across the board on Friday and will lik...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
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.