Equity traders have an adage about the tendency for stocks to enter a lull during the summer. “Sell in May and go away” has been a staple for years but would have certainly been poor advice for the grain markets this year. Since the beginning of the month, July corn futures have rallied 67.75 cents, July soybeans are up 37.25 cents, and July SRW wheat has gained 78.5 cents. The rallies have been driven by (of course) the delayed planting across the Midwest and fund short covering. Commercial selling has been active at new market highs and has capped some rallies. The question now becomes whether commodity traders should “Buy in June and sing a tune” (hey, it’s not easy making up adages on the fly). The fundame...
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.