The CBOT traded a quiet day with fundamental news and information becoming hard to find. Wheat futures found some support, but that buying was coupled with bear spreading in the corn market. Soybeans and soymeal were lower in lackluster trading while soyoil confirmed that recent lows are likely the bottom for the selloff. As February advances, U.S. planting will increasingly become a focus. The recent soybean selloff created harvest corn/soybean futures prices that strongly favored corn. Now, both markets seem to be correcting that dynamic, pushing planting forecasts to focus more on production costs and expected basis levels. Funds are holding a huge long position in soyoil (probably 90K contracts or so) and a modestly long w...
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.