Yesterday’s price weakness was met with renewed buying interest in the overnight session that carried markets higher. Strength continued into the day session and corn and soyoil each posted new contract highs. WPI hears that commercial hedging was light as farmers are focused on field work and some of Europe is still on holiday. The major themes driving the CBOT rally remain unchanged. Dry weather for Brazil and its expected disastrous impact on the safrinha crop’s yields are coupled with drought in the U.S. Plains and PNW. Concerns for the European and Russian wheat crops are pushing physical values higher, though U.S. prices remain well above the world market. U.S. soybean and wheat exports are a headwind for futures, but the...
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.