The CBOT turned higher overnight as worse-than-expected crop condition ratings prompted traders to continue adding weather premia to the market. Corn and soybeans were the upside leaders with SRW wheat reluctantly following. HRW wheat fell 5.75 cents as decent harvest progress and flat cash prices did little to encourage that market. The day session saw corn firming under Monday’s crop conditions report, but a warmer/drier trend for the Corn Belt into July helped temper gains. Soybeans were mixed as the U.S. weather is slightly bullish the market, although world demand is slowing and keeping pressure on prices. Wheat trade was flat and unexciting. Traders are positioning for Friday’s USDA reports, and there are small odds that...
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.