The CBOT was mostly lower in lackluster trade Wednesday with soymeal, live cattle, and hogs seeing the only substantial gains. The general trend for the week seems to be that global grain and oilseed supplies will be more ample for 2023/24 than expected, which is weighing on futures. Grains were again on the defensive as more export competition from Russia and Ukraine pressured wheat values and as traders are increasingly looking for stronger U.S. corn yields this fall. Markets are also starting to consolidate before the 12 October WASDE report, which will keep volatility and price action muted going forward. With September – historically a poor month for stock market returns – in the rearview mirror, U.S. stocks tentatively pu...
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.