Overnight volume was strong at the CBOT with traders eager to get back to work following a weekend of reductions in the Black Sea crop forecast(s). Several private firms lowered their Russian wheat crop estimates late Friday or over the weekend, which sent EU futures higher on Monday and created a rally which U.S. futures has to match on Tuesday. Wheat markets remain concerned about the weather in western Europe, eastern Ukraine, and central/southern Russia with crop loss estimates still largely unquantifiable. Corn and the soy complex have received spillover support as well as support from their own fundamental concerns, including the U.S. planting progress and South America’s weather. While CBOT trade started out higher, it graduall...
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.