Timing is of extreme importance when trading as commodity markets are filled with emotional participants and a great deal of money. Even accomplished hedgers are not casual about taking a loss.Timing is of extreme importance when trading as commodity markets are filled with emotional participants and a great deal of money. Few traders are so large that they enter a position and persistently defend it without concern that the increasing liability could force them into eventual capitulation. Even accomplished hedgers are not casual about taking a loss. Of necessity, that fact is true for speculators both large and small. The vulnerability of a miscalculation is particularly great for the trader of a small account. This is because liquidity in...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Inflation is back in the driver’s seat, and agriculture is getting pulled in two directions. A stronger dollar is pressuring grains despite fresh Chinese buying, while renewed Middle East attacks lift crude oil. Higher energy prices can support commodities, but they also raise expenses an...
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.