Ag commodities closed mostly higher for the day after trading both sides of unchanged. Continued weakness in macro markets pressured futures, while mild supply-side concerns for corn and soybeans were supportive. Growing doubts on whether the U.S. and China will meet in September are emboldening bears, especially as China continues to manipulate the yuan. The near-term weather looks broadly favorable for crop development with below-average temperatures for the bulk of the Corn Belt in the coming week and showers across its semi-dry eastern section. Past that, however, the eight-14-day outlook features a strong warming trend that will spread from Texas up through the Plains and into the Upper Midwest. Precipitation forecasts suggest Minneso...
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.