The December WASDE made few changes to its outlook for the world grain supply and demand situation, which left the CBOT to essentially continue its existing trends. Wheat futures sold off 10-12 cents lower and soyoil joined the weakness and broke a major technical support zone. Soymeal continued rallying to new contract highs but that could not support the soybean market, which fell to 2-cent losses. Soybeans and corn traded both sides of unchanged as the WASDE offered little in the way of a fresh outlook. The December WASDE featured only minor changes to the U.S. crop balance sheets, as is typical of the year-ending report but an outcome that was not expected this year. USDA trimmed the U.S. corn export forecast by just 75 Mbu and r...
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.