The February WASDE held a disappointing note for corn bulls and was modestly friendly for the soy complex. USDA’s forecast of U.S. corn ending stocks was on the high end of expectations while the soybean carry-out was as expected. The general theme of the February WASDE was one of stronger global demand and still adequate supplies. WPI’s work continues to suggest the 2020/21 U.S. corn and soybean balance sheets will continue to tighten and that the bull market is not over yet. In the short-term, however, profit-taking weakness may develop as funds may start to exit their long position. Heading into the noon WASDE, CBOT corn was trading 5-6 cents higher and at new contract highs while soybeans were up 15-18 cents with Marc...
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.