The CBOT was lower to end the week with quiet trading heading into the long, U.S. Memorial Day weekend. Bulls booked some profits after yesterday’s limit-up rally in July corn while bears were present but unwilling to commit to a larger short position after this week’s reversal. Funds were net sellers in corn and soybeans while bear spreading soyoil vs. soymeal. The ongoing Brazilian drought prompted the Brazilian government to issue a water emergency alert from June through September for Parana, Soa Paulo, Minas Gerais, and Mato Grosso do Sul – all states in the Parana River basin. The alert is the first in 111 years and underlines the severity of the ongoing drought. Not only will the Brazilian safrinha corn...
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.