Once again, the headlines for CBOT trade revolved around news from China, this time in support of both bulls and bears. Bulls benefited from the news of “flash” export sales of 17 Mbu to China and unknown destinations, which was an obvious encouragement to the market. One of the reasons it was so encouraging, however, revolves around the bearish China news, which is that the country’s time frame for purchasing U.S. soybeans is as steady as a palm tree in a hurricane. In the initial trade agreement from earlier this fall, China agreed to buy 12 MMT of soybeans by the end of December, but now that time frame has been extended to the end of February or possibly the end of MY 2025/26. For soybean traders, that’s a massiv...
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.