The CBOT opened on a higher note with soybeans finding solid support on technical buying as well as rumors of Chinese purchases of U.S. product. Soymeal and soyoil opened higher as well but worked their way lower through the day, posting losses to start the week. Grains opened firmer but could not find follow-through buying and slowly drifted lower through the session with funds returning as net sellers. The big news of the day was that China booked 4-6 cargoes (240,000+ MT) of soybeans for shipment in July. FOB NOLA offers are increasingly competitive with Brazilian offers as the harvest in South America dwindles and prices firm. WPI’s research suggests FOB NOLA offers have a 10-16 cent/bushel advantage versus FOB Paranagua, Brazil...
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.