Markets opened higher on continued short covering based on rumors (yet unconfirmed) that China’s Vice Premier will be visiting Washington in January (potentially this Saturday) to sign a Phase One trade deal. The news was reported this morning by the South China Post and has yet to be confirmed by government officials. However, the news was sufficient to prompt at least modest short covering in all markets, and significant short covering in soybeans. The weekly Export Inspections report was disappointing for corn but neutral/supportive for soybeans and wheat. Corn exports were under a half-million MT, after setting a marketing-year high of 1.7 MMT just two weeks ago. YTD corn inspections are less than half what they were this t...
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.