Over this past week, soybeans have gone up 50 cents in value and fallen 50 cents in value. Today, they appear to be falling again. Unlike wheat, the volatility cannot be fully blamed on Russia and its war on Ukraine, though sunseed is involved. Instead, it is a lot of known unknowns, to quote a former Defense secretary. Weather remains a mixed bag with a good monsoon expected in India but drought continuing to burden Europe. Despite suboptimal weather in Argentina, the Buenos Aires Grain Exchange increased its estimate for soybean production by 1.3 MMT to a total of 43.3 MMT. Moreover, the quality level was deemed 1 percent better than previously assessed. Weather in the U.S. appears to have settled down but is not benign. Then there is Eur...
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.