GOOD MORNING, Prices are mostly lower this morning as the markets rallied high enough to draw some profit-taking from the bull as the week draws to a close. Funds who are short may adopt a wait and see attitude, particularly as far as the Chinese shopping list goes. As corn and beans neared new highs for recent ranges there were more reports of hedging interest and cash sales in beans over the last several weeks. Beans have been gaining on corn, as they are apt to do in the month of December, but today the spread has turned a bit as profit-taking in beans sends prices lower. The new bean/corn ratio hit new highs at 2.42, a situation that typically reverses as the calendar turns over from Dec 19 to...
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.