General Comments Wheat contracts started off this morning with a bounce higher, while the soybean complex and corn contracts were rather sedate for a major portion of the trading day. Soybeans became increasingly active in the last hour and corn made most of its move higher in the last five minutes. It is always interesting to see how many important trading decisions get made in the closing minutes of the day before an impending report; as though that report date just suddenly snuck up on the market. Instead of buying options several weeks prior, traders will repetitively race in and buy more expensive options at the last minute. Irrespective of whether trading takes place electronically or in a pit at the exchange, it seems that human...
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.