Ag futures were almost uniformly red to start the week with wheat, corn, and the livestock markets extending Friday’s weakness and, in many cases, carving out new contract lows. There was no bullish news for wheat, cattle, or hogs, which led to a deluge of selling to start the week. The wheat weakness pulled corn futures lower as well with the March and May contracts finding new contract lows. Strength in soyoil and soymeal managed to save the soybean market from a similar fate and that market ended slightly lower. Funds were aggressive net sellers in everything but the soy complex for the day and have little reason to abandon this strategy with markets trending lower and scoring new lows. The weekly Export Inspections report w...
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.