The CBOT finished higher in the wake of a WASDE report that featured record large U.S. corn and soybean yields. The report was not quite as bearish as pre-report expectations suggested, with ending stocks figures for corn and soybeans remaining in-line with historic norms. Additional support came from the acknowledgement that Wednesday’s yield forecasts do not include the impacts of any adverse weather after 1 August (i.e., the derecho wind event across the Corn Belt earlier this week). Traders are looking for the U.S. corn yield in particular to be revised lower once those impacts are more fully known. The key features from today’s WASDE were the record large corn and soybean yields, pegged at 181.8 and 53.3 BPA, respect...
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.