The wheat market has backed off after its long bull run and has begun to cast weaker technical signals. This has caused some liquidation selling and the unwinding of wheat/corn spreads. General Comments It is 1 April, the beginning of a new quarter for many funds and trading entities and a time when fund managers often reallocate some of the money that they manage. USDA's stocks and acreage reports came out close to expectations yesterday. That is to say, the reports certainly did not scare those non-commercials holding long positions in grain and soy futures into a liquidation mode. The reports did not threaten to change technical market patterns. They also did not cause fund managers who planned to allocate more money to grain or soy ma...
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.