GOOD MORNING, The markets were given life and new direction courtesy of an unexpected bullish corn and bean stocks report this week. Fundamental jolts that coincide with chart price action always bring the largest bang for the buck. Between Monday and Tuesday, funds probably covered in about 50K contracts of corn but still remain about 100K short. Better hedge pressure was noted out of the west on the rally, with mixed cash at the Gulf. Funds could be closer to even in beans. Beans have a bid courtesy of more rumored bean biz with China, as Chinese privately-owned crushers were rumored to buy another 15 cargoes of beans in deals that could total another 1 mmt. The October 10 WASDE report also co...
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.