The CBOT was mostly lower at mid-week with the early week rally fading amid the resumption of grain exports from Ukraine and a favorable shift in the U.S. weather forecasts. Ship inspections in Ukraine’s Black Sea export corridor resumed Wednesday after a two-day halt that Kyiv blamed on Russia, which helped push wheat and other grain futures lower. Additionally, the latest weather forecasts for the U.S. show a stronger warming trend in the two-week outlook with less precipitation in the eastern Corn Belt, both of which will aid the planting effort. Funds took the opportunity Wednesday to book some profits and lighten up on long positions, particularly in wheat. A major trend that WPI will be watching going forward is the overa...
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.