Nearly every major agricultural futures market was lower on Tuesday as the impact of USDA’s recent reports seemed to wear off. The third round of Argentina’s “soy dollar” program and the lack of fresh export sales news for corn sent the soy complex and corn futures lower after their recent rallies. For corn, technical selling pressure also developed based on Monday’s weaker price action. Wheat futures tried to strengthen for the day but, despite a poor crop conditions report from USDA yesterday, were unable to find upside traction. Funds were net sellers across the board and continue to lighten up on overall commodity exposure amid the receding inflation outlook. Outside markets were weaker on Tuesday wi...
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.