The CBOT ended its holiday-shortened week on a mixed note with corn and wheat falling and soybeans holding their ground on solid export interest. Rumors circulated that China is looking for 4-6 cargoes of Brazilian soybeans for the summer, and soybeans seem to stand up anytime the words “China”, “buying”, and “soybeans” are mentioned in a sentence. This afternoon’s expiration of March options created selling pressure in corn and wheat as those who were short puts sold futures to cover risk. Funds are thought to have sold some 12,000 contracts of corn, 9,000 contracts of wheat, and bought 5,000 contracts of soybeans. The 2021 USDA Ag Outlook Forum concluded today and the agency, as well as var...
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.