After higher closes overnight (except soymeal), markets showed follow-through and opened higher this morning (except soymeal). While corn, wheat, and soyoil maintained gains into the close, soybeans and soymeal could not follow the pack. Wheat was the clear leader today, boosted by reports of production cuts in Canada and France contrasting with several tenders by buyers. Support under corn must reconcile potentially lower demand from China offset by plausibly lower yields in the U.S. crop currently beginning harvest. Early reports of disappointing yields are not an ordained outcome, but crops are ahead in maturity and lacked the moisture usually needed to have a bumper crop. The U.S. weather outlook remains warm and dry, perfect for...
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.