MARKET REACTION Corn prices sharply lower down 6 percent, taking wheat along for the ride, bean losses tempered with lower than expected acreage. Corn yield and production at the higher end of trade expectations at 169.5 bpa and 13.9 bln bu production, over the higher end of estimates. Bean yield and production at the higher end of trade expectations at 48.b bpa and production at 3.68 bln bu 19 percent lower than year ago. All wheat production at 1,980 mln bu, towards the higher end of trade expectations. WASDE confirmed 90 million acres of corn planted and 76.7 million acres of beans. The corn acreage is only 1.7 million acres lower than the June report. Reaction was most bearish for corn, which broke to...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
What You Need to Know Today: Wholesale inflation was flat in July, with the Producer Price Index (PPI) unchanged versus expectations for a 0.2 percent increase. Core PPI rose 0.2 percent, also below expectations. The softer inflation data has reduced the odds of a September interest rate incre...
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.