The CBOT opened lower with continued pressure from excellent corn/soybean conditions ratings and increased chatter about above-trendline or record yields this year. Wheat futures were higher in range-bound trade as buy wheat/sell corn spread trading dominated the day. The lack of new daily export sales reports was a bearish weight on the soy complex today. Chatter is circulating that Brazil booked 2-3 cargoes of U.S. HRW wheat either Tuesday or Wednesday. The country removed its TRQs for non-MERCOSUR origins a few months ago, but this is the first U.S.-shipment of which WPI is aware. U.S. wheat is overpriced relative to global FOB offers, but cheap freight from the Gulf to South/Latin America has aided buyers in those countries and k...
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.