The CBOT rallied today on hints that the Trump administration may be planning policy action to boost biofuels demand. There was no time frame given in U.S. Agriculture Secretary Perdue’s statement, but with the Trump administration actively looking to help farmers, there are few traders willing to bet against such news. On the other hand, there are few reasons for traders to place bullish bets with no forecasts of an early frost or freeze. Overall, Secretary Perdue’s announcement was the most notable news item of the day, with other market chatter limited to weather/U.S. crop maturity delays. Outside markets were largely supportive today with the VIX falling 1 percent as investor confidence swung back to the positive side...
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.