The December WASDE is not normally a market-moving report, and this year was no exception. The USDA made only mild revisions to U.S. and global grain balance sheets, which left the CBOT to mostly drift lower heading into the weekend. Corn and wheat futures ended lower and turned sideways after their recent two-week rallies appeared to hit resistance. The soy complex also pushed lower with favorable weather forecasts for South America and less-aggressive cuts to Brazil’s soybean production outlook weighing on values. Funds were net sellers for the day but trading volume was light and much of the day’s activity was profit taking and position re-adjusting following the WADSE. Friday’s price action indicates the soy complex wi...
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.