SPREADS Sep/Dec corn spreads continue to have heavy volume, with nearly 80K traded Monday, and is trading from 12 1/4c to 12 1/2c today. The spread traded out to 13c before encountering short-covering activity. Short-covering was noted in corn yesterday, with September open interest declining by 31,196 contracts, while March picked up 12,656 new contracts. Bean spreads remain fairly quiet with Sep/Nov trading from 2 1/4c to 3 1/4c carry. Sep/Dec meal spreads are slightly narrower trading into $4.80 from $5.40. PALM OIL Prices gained on Tuesday after data showed that Malaysia's July exports grew 20% on the year to hit a record high of 1.78 mmt according to CGS-CIMB. Cash offers for RDB palm and ol...
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.