The CBOT started the day lower with continued fund liquidation in the major ag commodities. End-users, however, stepped up and offered support at key technical levels, which allowed the markets to firm and rally into the close. Soybeans were the upside leader for the day, buoyed by new contract highs in soymeal. Cash DDGS and soymeal prices are strongly higher this week as buyers give in and accept higher asking prices. That, in turn, is supporting CBOT soymeal trade and the rest of the soy complex too. Bull spreading was a feature of today’s trade with China’s purchase of 0.68 MMT of corn supporting the market. Sellers are content to let the market rally and hedge selling has been undeniably light so far this year. The U...
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.