Friday’s strength in CBOT and broader global ag commodity futures was simply a foreshadowing of the rallies that would develop on Monday. Heading into the weekend, markets were jittery on perceived weather risks, many of which turned out to be prescient. Over the weekend, parts of the U.S., Canada, and Europe received snow or freezing weather that threatened the wheat and canola crops while southeast Europe and parts of Russia remain too dry. Similarly, Brazil’s weather is shifting worryingly dry for the safrinha corn crop while Argentine farmers can’t harvest in earnest due to waterlogged fields. All these factors combined to create strong rallies in ag markets to start the week, with Paris and Kansas City wheat futures l...
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.