With yesterday’s May Day celebrants back at work today, trading volume for grain and soy markets picked up and will probably be above the recent average. Basically, it was a tale of two markets today. The grains were stronger, but the soy complex was hammered again. Weekly export sales for corn and wheat were mediocre but about as expected, while soybean and soy product sales were less than expected. Relatively speaking, grain sorghum was the star of the weekly export sales report with sales of 7.3 million bushels. Approximately 4.9 million bushels of that are destined to China, and another 2.0 million bushels reported as destination unknown are likely associated with that country. Soybean traders are getting concerned by a lack of d...
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.