These are lower volume sessions with dropping open interest, indicating the shine is off on the bull market but fundamentals remain firm. The combination of winterkill, drought and continued strong demand hang over a market that sold off corn and soybeans while correcting on wheat. USDA’s Outlook Forum provides grist for discussion though its numbers are highly speculative at this juncture. For the 2021/22 crops, USDA’s forecast came in a half million acres larger than expected for soybeans, a million acres less on corn, and right on the money for wheat. The combined predicted area planted to corn and soybeans is a record 182 million acres (73.65 million hectares), but after the two previous years had planting problems and the...
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.