The second trading day of the new year started modestly enough. Corn and soybeans were up a nickel, soymeal was in the hole. Then with a burst of volume corn quickly moved into double digit gains with soybeans subsequently bumped much higher. Wheat was more moderate with SRW even turning negative before being pulled back to the upside. The market has favored oilshare, and March soyoil topped resistance today but the notable story was in soymeal, which turned a mostly negative morning into a contract high by the end of the session. Today’s outcome was the result of new volume from managed funds combining with speculative buy-in of the narrative that South American crops will underperform. It is not USDA’s nature to...
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.