Okay, the market is not dull, but it is sometimes difficult to explain. Except for wheat, the sharp sell-off appears as an over-reaction to yesterday’s WASDE, a report that did not really break much new ground. The markets opened lower but then this rush to get out developed. Volumes were large as sell-stops triggered a lot of selling. But if it is hard to explain, it is probably not sustainable. Some point to good Midwest weather, but that ignores some challenging weather and the underlying fundamentals. Some say it was the lackluster Export Sales report, but it was good for corn (limit down today) and there are no soybeans to sell (down 3.5 percent). Some said it was the Mississippi River closure due to a broken bridge, but that is...
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.