Funds increased all their short positions last week in the face of what looked like a bullish weather outlook over the weekend. While it will be several weeks or longer before the final effect of this weather event can be determined, there are a few certainties.Funds went home last Friday holding a record-large short position in Chicago wheat futures and a big short position in corn futures. They had also moved to the short side of soymeal for the first time in 12 months and increased all their short positions last week in the face of what looked like a bullish weather outlook over the weekend. That forecast called for heavy rain across a significant portion of the Corn Belt, slowing corn planting, and the potential for a major winter storm...
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.