After sharp losses earlier in the week, the market turned around today for everything but July corn. Egypt’s GASC paid a record sum for wheat, indicating prices will remain elevated and enabling a push higher today for futures. Ukraine says it continues to work with the UN and others to export its grain via the Black Sea, but the prospects seem bleak. Today’s gains do not come close to erasing the even sharper losses of the two earlier trading sessions. July corn has now scored losses in three straight sessions, though there were gains today in the deferred. The July contract was beaten down as funds reversed an earlier long corn/short soybean position. However, demand remains strong and therefore so does basis, making o...
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.