To state the obvious, corn and soy futures markets reacted to the flash drought with a vigorous weather premium rally that peaked yesterday, then paused to take a breath today. The current short-term heat wave, displaying some of the hottest temperatures of the summer in the Corn Belt, has joined with the ongoing precipitation deficit in western and central portions of the Belt that has been dubbed the flash drought. Because the maturity of Midwest crops has been lagging ever since so much of them were planted late, the current heat combined with the lack of moisture has hit with potentially greater negative impact on crop yields, especially for soybeans, than might otherwise be expected in late August.Actually, the Midwestern drought is...
What You Need to Know Today: U.S. weather is getting more attention this week as conditions vary greatly across the western, central, and eastern corn belts, with the different regions battling dryness and too much rain simultaneously. The ProFarmer Crop Tour began today in Indiana and Nebrask...
Key Takeaways: Argentina is on pace for a record corn crop and record exports in the current marketing year, with abundant supplies likely to keep the country highly competitive in global export markets. Argentina’s record exportable surplus is allowing it to offer highly competitive pri...
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.