The CBOT was mixed at mid-week amid a general lack of fresh news. Corn and soybeans both drifted lower in quiet trade and extended Tuesday’s pullback and reversal, respectively. Wheat futures pushed higher as the Ukraine export corridor agreement remains in jeopardy while U.S. basis levels are rising, especially for high-protein wheat. Funds were slight net sellers in corn and cautious sellers in soybeans, having been burned by the WASDE’s unexpectedly bullish implication, and were net buyers in wheat. The Ukrainian export corridor agreement is under fire this week as Russian and Turkish officials meet. On Wednesday, Russian President Putin said that “The issue has not been resolved” regarding his complaint th...
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.