Today USDA published the first WASDE for the 2014/15 crop year for both corn and soybeans, and the report was more bearish than the average of market expectations. The message being conveyed by this day's price action is that further downside is limited. General Comments Today USDA published the first WASDE for the 2014/15 crop year (September/August) for both corn and soybeans, and the report was more bearish than the average of market expectations. However, market participants seemed to perceive a buying opportunity rather than justification for more aggressive selling. The message being conveyed by today's price action is that further downside is limited.If a report similar to today's had been published in January, the market would hav...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...
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.