The Market It was a volatile week that started with price spikes on fears of a devastating drought but then sharply reversed on prospects for improved moisture - the very definition of a weather market. While soybean conditions have worsened, the crop is less threatened than corn at this juncture. Soybeans handle early season dryness better and can rebound on good rains in late July and August. The problem is longer term pattern of dryness. Soybeans hit a 3-month high on Wednesday and then incurred a 67-cent loss over the next two days. Yet export demand continues. Soyoil fell the daily limit (4-cents) after U.S. EPA’s renewable biodiesel blending requirement for the next three years failed to match up with market aspirations. The v...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
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.