Overnight trading saw widespread pressure that continued yesterday’s turn lower. Corn fell 3.5 cents, soybeans lost 4 cents, SRW wheat dropped 4.75 cents, and HRW futures were 16.75 cents lower. Weather across the U.S. is looking more favorable for crop development, which is pressuring bulls’ interest in adding to long positions. The day session featured continued mild pressure on corn and soybeans with funds exiting their short positions, evidenced by today’s drop in open interest. Wheat futures were higher on continued hot/dry weather across Europe and parts of the Black Sea. Trading was mixed overall and featured lackluster volumes. Traders are still rolling positions from July futures to August/September contracts, an...
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.