Markets were cautious ahead of this afternoon’s WASDE report and wheat and soyoil opened on a weaker tone. As the morning wore on, buy soyoil/sell meal trade developed and wheat selling pressured the corn market as well. Funds were long wheat and soyoil but short everything else heading into the WASDE report, and that hasn’t changed, except that the long wheat position is now much smaller. The USDA incorporated reasonable and somewhat unsurprising estimates of Chinese Phase One agreements into WASDE balance sheet line items today. Chinese 2019/20 soybean imports were revised 3 MMT higher and pegged at 88 MMT. USDA put Chinese 2019/20 corn imports at 7.2 MMT, which reflects China’s WTO commitments. USDA left China’s...
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.