GOOD MORNING, Funds purchased a good chunk of corn on Tuesday to the tune of 30K contracts. The gap-higher trade in corn Tuesday implied that there was some panic-buying from not only funds who had to cover shorts, but from end-users willing to raise their ideas as they now felt they had to chase prices. This is something not seen in corn since prices bottomed out after the August WASDE with December prices at $3.20. The gap in corn this week showed that old shorts were throwing in the towel as prices jumped to new highs. Grains are weaker this morning as some of the panic-buying subsides. Corn prices may begin weaker, but China has been buying this market, and in lieu of a drop in ratings the $3.50 may...
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.