Overnight trading saw a modest rally as prices bounced back from yesterday’s daytime losses. Soybeans and wheat were the upside leaders with corn a reluctant follower. Today was the first position day for July futures, and tomorrow will start the delivery period. Given the recent strength in cash prices, deliveries are expected to be light. Volume was light overnight as traders position for July deliveries (or exit positions to avoid delivery) as well as squared positions ahead of Friday’s reports. The CBOT was mostly in the red during the day session as traders are now worrying that the grain stocks figures might be more bearish than the acreage numbers will be bullish. Soybeans broke below key technical support, which trigger...
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.