With the June Acreage and Grain Stocks reports past, the CBOT resumed trading its favorite variable for the peak of summer – weather. For Tuesday’s trade, this meant a focus on five-year highs in corn ratings and an excellent outlook for the crop into mid-July at least, which were two factors helping push corn futures to new contract lows. Soybeans found a bit more support, primarily from political developments on Capitol Hill as the Senate blocked the use of biofuel tax credits for non-North American-sourced feedstocks. Wheat futures rallied and scored modest gains as conditions deteriorated last week for both the winter and spring wheat crops, which sparked a small flurry of short covering. The biggest driver of action 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.