It is commonly accepted that without a major crop production disaster in the Northern and/or Southern Hemisphere, the fundamental outlook for U.S. corn, wheat and the soy complex in 2020/21 looks quite bearish. It appears that growing U.S. and world supplies will outpace demand. That outlook is further complicated by the current and future impact of the coronavirus pandemic. However, given its severely negative affect on the U.S. economy and on the overall global economy, the still spreading disease is adding another bearish layer to the market’s outlook. And, so far there is no sign of a weather-related problem for crops in any country or region capable of having a significant influence on grain and soy markets. In fact, wheat...
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.