The CBOT was mixed on Monday with the soy complex trading sharply lower after Indonesia’s President clarified that the country’s palm oil export ban would only apply to refined, bleached, deodorized (RBD) palm olein, not crude palm oil (CPO). Indonesia exports primarily CPO, so its ban will not have the supply-tightening impact implied by Friday’s announcement. While the soy complex relaxed after Indonesia’s clarification, corn futures pushed higher on continued planting delays in the Midwest. Wheat was mixed while the cattle markets moved sharply lower after Friday’s surprisingly bearish Cattle on Feed report. The weekly Export Inspections report was neutral corn, wheat, and soybeans with corn and soybean ins...
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.