The CBOT was mixed to start the week with soybeans surging early on the hot, dry conditions last week and forecast for this week, with an added boost from a sub-50 BPA ProFarmer yield estimate. Corn followed soybeans higher but ran into resistance just shy of $5 that stalled the day’s progress. Traders are increasingly worried about crop stress over the next few weeks, despite relatively favorable crop tour results. Wheat, on the other hand, found no encouragement from the week’s weather or weekend developments and promptly sold off with both the KCBT and CBOT markets targeting major support levels. Funds were strong net sellers in wheat and were net buyers across the soy complex and corn. The ProFarmer crop tour concluded last...
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.