CBOT market dipped lower overnight, only to find end-user demand and some speculative buying. Any end-of-the-month selling pressure is now over, as is most of the rolling of March positions froward, which is helping futures stabilize. The South American weather forecast is worrisome for the corn crops there, which helped the CBOT move higher Tuesday. News of U.S. corn export sales to Japan were supportive, and rumors of Chinese interest in corn and soybean purchases was also supportive. Chinese buyers, and others, continue to use breaks in CBOT futures to fix basis contracts or book new sales. Importantly, end-users have continued to scale up their pricing ideas, allowing support levels to inch higher in CBOT markets. Funds are thoug...
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.