The CBOT opened on a weaker note with corn, soybeans and wheat trading lower Sunday night and into Monday morning. Monday’s opening bell, however, saw corn and wheat traded higher while selling pressure accelerated in wheat. The day featured mostly low-volume trade with corn ending slightly lower, wheat futures posting double-digit declines, and soybeans modestly firmer on another round of daily export sales. The USDA announced the sale of 132,000 MT of soybeans to China while Mexico secured 250,371 MT. WPI sources note that while China was an active buyer last week, non-China destinations were on the sidelines waiting for prices to cool down. As reflected in this week’s MERCOSUR Regional Analysis from WPI, South American...
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.