GOOD MORNING, Prices made new highs for meal, corn, and wheat as the bull market rolls on. Corn basis is firm, as are cash markets across the world. The Chicago wheat market now inverts along with bean, meal, and corn spreads. Uncovered consumers and stock-piling due to fears of another round of Covid put a solid spin to price action. Technical break-outs surface on the grain charts, with meal posting new ctr highs as well. Funds purchased another round of contracts yesterday for everything but soyoil yesterday, which triggers the new highs today. WEATHER --Global concerns remain in place as weather forecasters continue to expect no change for soyoil moisture in the Black Sea. The start of...
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.