After yesterday’s mild recovery, the CBOT saw continued selling pressure with significant bearish developments. Wheat futures broke below key technical support while soymeal posted a new contract low despite significant commercial pricing activity. Several commodities filled open chart gaps, which created additional selling pressure. With the end of the month approaching, there is potential for continued profit-taking and defensive action as the market heads into February. Brazil’s large corn and soybean crops are likely to create additional weakness early in February, especially in the soy complex. Looking beyond that, however, there is still some weather risk present for Argentina and Europe’s winter crops, which...
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.