The December corn contract rose 2.4 percent today and WTI Crude was up 1.7 percent. The corn price is rising in the middle of otherwise bearish indicators such as a potentially fruitful harvest and the lack of any recent strong demand indicators such as purchases by China. Apparently, outside money is very bullish energy and the corn market provides a secondary approach to investing in it. The correlation between the two is positive, with an R-squared of .729506 over the past 35 years. However, the relationship oddly becomes weaker when looking from 2007 forward, the year that the ethanol mandate was significantly increased. The value of ethanol has also risen this year as vaccination rates rose along with road traffic. Analysts expe...
Russian Grain Markets: 29 June-3 July 2026 The new marketing season has officially begun in Russia, although bearish sentiment has been concentrated in the southern regions closest to the Black Sea ports, where export demand has been weakest. Delays in grain deliveries to inland elevators have...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
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.