Wheat, the soy complex and now corn are all re-emphasizing the lesson to both speculative and commercial traders that excessive reliance upon automated indicators can result in substantial returns being left on the table. General Comments Corn, wheat and the soy complex all closed higher today. Both wheat and the soy complex closed strong enough to place most traders holding short positions on margin call. The March corn contract is pressing up against the upper end of its recent trading range and will likely punch through resistance at the 12 November level of $4.50 per bushel. This price action makes sense. World Perspectives noted back on 7 February that this seemed destined to occur if USDA's February report indicated U.S. corn ending...
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.