The CBOT saw significant selling pressure and long liquidation after “constructive peace talks” developed between Russia and Ukraine early on Tuesday. News reports indicate the two sides are far from reaching an actual cease fire or peace agreement, but the day’s headlines were positive for Ukrainian production and export potential. Consequently, the CBOT swiftly sold-off on the idea that the world will be somewhat less dependent on U.S. and South American corn/soybean supplies this year. For the day, funds were net sellers of 12,000 contracts of Chicago wheat and 30,000 contracts of corn! Funds also sold some 24,000 contracts of soybeans while liquidating some of their soyoil and soymeal longs as well. Outsi...
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.