Crop tour yield estimates were the feature of the day, and field reports that yields are likely to be lower than reflected in the August Crop Production report were supportive for row crops. The weather outlook remains broadly favorable with below-average temperatures and above-average rainfall for most of the Midwest. Presently, it looks like the only weather risk for the corn and soybean crops is an early frost/freeze. Cash markets continue to weaken around the world as there seems to be no lack of corn, wheat, or soybeans this year. Wheat prices are moving lower under pressure from European/Black Sea harvest and export forecasts, while NOLA offers are falling to keep competitive with South American prices. The only bullishness in cash p...
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.