GOOD MORNING, Prices are higher across the board this morning on weather forecasts, with positive macros lending a hand. Corn is higher this morning on the back of lower Pro Farmer tour results and forecasts for hot and dry weather this week. The Pro Farmer tour put the corn yield at 177.5 bpa vs. USDA at 181.8 bpa, and production at 14.820 bln bu, vs.15.278 bln bu in the August report. Pro-Farmer results were more bearish for beans, with a 52.5 bpa, and production at 4.362 bln bu vs. 4.425 bln bu in the USDA report. The largest discrepancy between the August USDA number and the crop tour was therefore in corn, which created more unwinding of previous buy bean/sell corn trade. The number for corn was bu...
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.