The CBOT was mostly lower to start the week with corn futures drifting sideways while soymeal and soybeans pulled back from recent strength. Wheat futures were mostly lower, but the KCBT market managed to post a hook reversal for the day, which indicates support may be starting to enter the market. The day’s big winners were the livestock contracts, however, as lean hogs and live cattle rallied to triple-digit gains amid growing fund buying interest. Grain markets are mostly focused on the wrap-up of the Northern Hemisphere grain harvest and export demand, the latter of which offered mixed influences for grains on Monday. The CFTC report showed funds are still comfortable being short or selling longs across the board (with the notable...
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.