The CBOT opened on the defensive overnight and traded that way heading into the opening bell. The lone exception was soybeans, which finished 3¼ cents higher overnight and started the day session firm as well. The day session brought more of the same, with corn lower on favorable U.S. weather forecasts while profit taking in wheat pushed that market sharply lower. Funds emerged as aggressive sellers in corn and wheat, triggering sell-stops in the latter market. Soybeans continue to firm on solid Chinese interest in buying U.S.-origin product. The weekly Export Inspections report was bearish corn with 45.2 mbu of inspections coming just shy of the 47.5 mbu needed this week. Soybean shipments were similarly disappointing, reachi...
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.