The futures market has seemingly given U.S. farmers and commodity producers (e.g., soy crushers) a gift with another day of pre-holiday rallies. The CBOT surged higher in early trade on Tuesday, with soybean futures extending their technical rally above $13.00 and corn futures breaking technical resistance at $6.00 in the overnight trade. Wheat also joined in on the grain market rally with a rally in cash HRW markets offering ample support for futures. Funds were net buyers for the day, but partial profit taking was noted heading into the three-day weekend. Farmer selling was light on the rally but WPI notes resting sell orders were triggered in corn and soybeans when the markets pushed above key technical levels. USDA’s Cold S...
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.