In 2000, the American punk rock band Sugarcult released a song called “Bouncing Off The Walls” that featured the chorus line “I’m bouncing off the walls again (whoa)”, which is a pretty good description of Monday’s CBOT trade. Except, instead of walls, the markets were bouncing off their lows again (whoa), lows that were formed only Friday. Corn and the entire soy complex posted strong gains to start the week with mild short covering developing as the U.S. weather forecast now favors less-than-ideal conditions over the next two weeks. That, combined with caution ahead of the Crop Progress/Conditions data and “Pro” farmer crop tour results helped put a bid under markets for the day. Funds were...
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.