A confluence of factors helped soybean futures post a technical upside breakout overnight with strength continuing into the day session. Macro-traders are increasingly concerned about inflation, but raw commodity prices are typically beneficiaries of inflationary pressures and that thinking led to an influx of managed money in CBOT markets on Tuesday. Disappointing yields from Brazil’s still-delayed soybean harvest and a slow start to the export year were further supportive. November soybeans and December corn rallied to new contract highs as the Ag Outlook Forum’s key takeaway was that of “big demand”, which has traders thinking U.S. acreage needs to increase. Funds were net buyers in the soy complex and corn...
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.