Overnight trade featured prices on both sides of unchanged in heavy volume (well, heavy for an overnight session). Corn attempted to break below yesterday’s low but failed, which brought more buying heading into the morning. At the close, corn, soybean and wheat futures were all higher. The day session saw CBOT futures move up, and fund short covering in soybeans along with long position taking in corn and wheat propelled the market. Breaks were eagerly bought, and farmer selling on rallies was notable but not as heavy as yesterday. The weekly export sales report was delayed one day due to Monday’s U.S. holiday, which likely postponed some bearish news. With the U.S. dollar’s recent strength, it would be unsurprising to s...
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.