The CBOT turned lower on Monday, with the back-and-forth action of the Supreme Court and President Trump regarding tariffs on foreign imports driving volatility. For the ag markets, the biggest impact of the SCOTUS ruling seems to be doubts that China will adhere to its soybean purchase plan, and possibly that other countries will stick to their recently negotiated agreements. That put futures in a bearish trend on Monday, with export demand expectations revised lower, at least for now. Additionally, improving weather in South America and Brazil’s advancing soybean harvest and safrinha corn planting pressured the competition outlook for U.S. grains. The day’s trade served as a reminder of how sensitive markets are to unpre...
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.