Futures contracts for corn, wheat, and the soy complex all appear poised to trade lower into the middle of December. Livestock futures could have a momentary bounce before they also follow the grains lower into year end. Futures contracts for corn, the soy complex, and Kansas City wheat had each acquired a bullish inverted position – where the nearby contracts are higher than the more distant contracts for 2023. The development of this pricing structure occurred as funds established long positions due to potential South American weather, political issues, and because of concerns about limited ending-stocks. However, definite bullish conditions have not materialized. Instead, current U.S. export sales data implies that mar...
What You Need to Know Today: There has already been a strong run of flash soybean sales announcements in recent weeks, but more than 1.4 MMT reported this morning is an exceptionally large single-day total with major implications for the market. If the sales to China and unknown destinations w...
On Friday, at 6:57 AM, President Donald Trump announced, via a social media post, a 90-day window during which up to 300,000 metric tons of product for ground beef could be imported outside of tariff-rate quotas—a move aimed at bringing down costs for American consumers. This is the secon...
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.