General Comments Monday's important WASDE looms over the markets, but it was not the only factor in play today. Cash markets, export sales and weather all had some impact as well. Futures markets acknowledged that cash bids for spot supplies of corn and soybeans were on the rise again. Apparently, many users want to obtain ownership of enough physical supplies to carry them through September and are finding it hard to do so in the current price environment.Nearby futures contracts responded by widening the inverse between them and new crop contracts. With open interest below 2,000 contracts and trading volume of less than 1,000 contracts, August soybeans no longer matter in the bigger picture. However, September soybeans jumped to clos...
What You Need to Know Today: U.S. weather is getting more attention this week as conditions vary greatly across the western, central, and eastern corn belts, with the different regions battling dryness and too much rain simultaneously. The ProFarmer Crop Tour began today in Indiana and Nebrask...
Key Takeaways: Argentina is on pace for a record corn crop and record exports in the current marketing year, with abundant supplies likely to keep the country highly competitive in global export markets. Argentina’s record exportable surplus is allowing it to offer highly competitive pri...
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.