The CBOT was solidly in the red on Wednesday while cattle futures regained some of their former strength. Markets had to process multiple headlines at the national/international political level, which led to some mild risk-off trade. Mostly, however, for grains, the looming WASDE dominated the day’s trade and created another day of sideways/lower but consolidative trade. Cattle futures initially pulled back on technical selling and macroeconomic jitters but eventually found solid buying support and saw a strengthening rally through the afternoon. The day’s trade signaled that traders are content to cautiously adjust positions ahead of the WASDE but also hinted that geopolitics may be about to throw additional volatility into the...
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.