CBOT trade was slow and mixed for most of Tuesday, with a slight uptick in commercial pricing interest supporting corn, soybean, and SRW wheat values. Funds are thought to have been modest net buyers of corn and soybeans. Yesterday’s Crop Progress report highlighted the raw efficiency with which farmers can plant crops and reduced any concerns that were related to a late planting. Farmers are taking no chances after last year’s disastrous planting season and are entering fields at any and every opportunity. Discussions for a free trade deal between the U.S. and the UK are back on the calendar and accelerating. Trade negotiators from both countries announced they will hold virtual talks with some 30 different groups. Both...
What You Need to Know Today: Corn and soybean futures were lower to open the week, with funds still in control and in a selling mood. The upcoming WASDE report on Tuesday is also likely to feature larger corn and soybean stocks, which helped put grain futures on the defensive. Wheat futures we...
Key Takeaways: Currency exchange rates influence agricultural export competitiveness and producer profitability, even when underlying commodity prices remain unchanged. A weaker domestic currency allows agricultural exporters to receive more local currency for dollar-denominated sales, potenti...
Although inflation has remained elevated since the post-COVID surge, it steadily moderated until the past year. More to the point, today’s inflation looks very different from 2022, when the Consumer Price Index (CPI) peaked at 9 percent. During and after the pandemic, the M2 money supply...
Soybeans Brazil Last week was once again very quiet, with very few trades. There is little activity in Brazil's old-crop market, with virtually no old-crop offers remaining for November. Brazil's export lineup for November and December is currently much smaller than last year's. After exporting...
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.