The CBOT was mostly red today with the soy complex leading the way lower. Soyoil collapsed today while soymeal fell to another contract low and both pulled soybeans lower. Wheat futures continued their measured retreat from recent highs and sell wheat/buy corn trade boosted the latter commodity. Fundamental news was light, except for weather forecasts for the U.S. and Brazil that remain broadly favorable, and the announcement of a daily corn sale. This week has been highly unusual given the impact of the coronavirus news on global financial markets and the Lunar New Year holiday that slowed Chinese markets and trade. Both events came at the wrong time for the soybean market that was trying to find an export-led rally, though corn sal...
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.