GOOD MORNING, Wheat strength is dominant this morning, as prices jump to new trading range highs as the last of the shorts cover. Spread trade continues with wheat firmer vs. corn, soyoil firmer vs. meal, and beans continuing to gain on corn. New crop 2020 bean/corn ratio sits at 2.38%. Wheat continues to trend higher with a bid from a chart perspective, but other factors as well. Winter wheat plantings could be lower, world wheat values are higher (Egypt purchased a combo of Ukraine, Russian, and French), and China has had interest for US wheat, as inspections showed. This morning, Saudi Arabia is tendering for 600,000 mt of wheat for Feb/March shipment. The rest of the board is following, as it...
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.