Bull markets need to be constantly “fed” with news and when that feeding slows or lapses, the rally does too. That’s largely what happened at the CBOT on Tuesday with a quiet day for fundamental news allowing markets to pull back with mild profit taking and slight corrective price action. Prices didn’t stray far from their recent highs, however, a sign that bulls remain engaged and bears on the defensive. The reasons for this, of course, are the heightened political volatility in the Black Sea and Ukraine’s dwindling export opportunities as well as the hot, dry U.S. weather forecast. USDA’s Crop Conditions report on Monday didn’t offer many surprises and the market is now largely waiting to see what...
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.