The CBOT was mixed/slightly lower overnight with soybeans finding some support from this week’s Chinese purchases while corn sagged under the weight of fund selling. The opening bell found aggressive selling from money managers and corn and soybeans moved lower immediately. Wheat futures traded sideways at first, finding some support from dry weather forecasts in Europe and the Black Sea, but eventually broke lower and posted large losses for the day. While the U.S. weather forecast remains broadly favorable, drought is an increasing issue for Europe, the Black Sea, and parts of Southern Brazil and Argentina. Drought conditions are worsening for France and Germany, causing French wheat crop ratings to reach 58 percent good/exce...
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.