The CBOT tumbled again on Wednesday amid increased chatter about a near-term market top. July and November soybeans violated technical support at the open, which triggered sell-stops and left the soy complex as one of the weakest markets of the day. Corn and wheat were lower as well with 2021 production prospects rising. Private firms are continually adding to their corn acreage forecast (and, to a lesser extent, soybeans), which is keeping pressure on row crop rallies. Wheat markets were pressured today by surprisingly large yield estimates from the Wheat Quality Tour. Funds were net sellers for the day and this Friday’s CFTC report is apt to show significant long liquidation. The U.S. weather patterns are shifting favorably f...
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.