The CBOT turned lower on Tuesday with wheat leading the way on new contract lows in Paris wheat and aggressive competition from Ukraine and Russia on the export market. CBOT wheat also scored new contract lows as traders again piled into short positions on the emerging technical weakness. Corn and the soy complex also turned lower but lacked the severity of the wheat market as favorable South American rains aided crop prospects there. Too, the markets are starting to settle into a pre-WASDE trading range with traders uninterested in adding risk heading into the report. The report should be mostly neutral corn and soybeans but how USDA will handle the South American crops remains the major wildcard. There is a wide range of estimates around...
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.