The CBOT was mostly lower on Wednesday with a collapsing crude oil market and sharp selloffs in European commodity markets pressuring values. Tuesday’s Crop Progress report failed to offer much bullish influence for prices and new crop corn and soybeans pulled back. Wheat attempted to bounce higher, but fund liquidation stalled that attempt and the market posted small losses. Importantly, technical conditions for multiple markets – soybeans, soyoil, corn, and wheat – are all deteriorating rapidly and will likely keep funds on the selling side of things for a while. There is still potential for the market to see a weather-rally in early July, but the market’s current mood seems to be that of taking risk premium out of...
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.