Wheat futures sank lower the day before the December WASDE on concerns that the USDA will cut its U.S. export forecast in the coming report. Certainly, the slow pace so far this year could justify such a move, and traders were taking risk off the table heading into the report. Similarly, the market viewed soybeans as at risk of export cuts and pushed that market lower before a rally in soymeal helped pull futures 10 cents higher by the close. The EPA’s new biofuel mandates cratered the soyoil market overnight, but technical buying returned around mid-day to push the market off the day’s lows. Corn futures were largely flat in two-sided trade heading into the December WASDE. Outside markets were mostly higher and supportiv...
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.