The CBOT was mixed in quiet trade to start the week with traders looking at the U.S. and EU weather forecasts for supply-side guidance ahead of Friday’s WASDE report from USDA. The U.S. and EU weather forecasts are largely unchanged from last week and feature hot, dry conditions for the U.S. Plains and western Europe. This should continue supporting grain values. Conversely, Ukraine’s grain exports are picking up pace with 10 vessels ready to set sail, which is pressuring market psychology on the margins. WPI notes, however, that the grain aboard is of questionable quality and the country’s ability to follow up these shipments with more grain in a timely manner remains doubtful. Overall, the day was one of mild sprea...
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.