GOOD MORNING, Funds were buyers across the board yesterday on macro inflows everywhere, friendly USDA report expectations next week, and a continued good export pace. Would note that general business announcements, particularly for beans, have been slow to emerge, but funds continue to buy the markets on dryness concerns globally. Some analysts theorize that the slower pace of bean buying by China was related to a wait-and-see policy for who wins the election. Regardless, there were rumors that China has been around the bean market, and dry weather combined with a slower than expected planting pace create markets that move first, and ask questions later. Wheat prices are higher with some tender business...
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.