The CBOT essentially abandoned its existing trends on Monday and volatility was pronounced, especially in the soy complex. For the past few weeks, soybeans and soymeal have been trending higher while soyoil collapsed under the EPA’s new biofuel mandates. That changed almost without warning on Monday, however, as soyoil posted a bullish reversal and soymeal collapsed and settled $20 or more lower. Soybeans were pulled lower by the soymeal selloff and the favorable weekend rains in South America. Corn and wheat futures were higher to start the week after weekend attacks by Russia on the Ukrainian port of Odessa, which was supposedly protected by the grain export corridor agreement. The port has resumed operations, but the event h...
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.