Today’s USDA WASDE report was not what the trade thought, and yet it was not caught flat-footed. To some degree this is because years of guessing wrong on what USDA will say, it simply takes it as another observation point and not necessarily the Bible. This was reinforced by the fact that corn prices were slow to react to the report. Several minutes after its release, corn was still trading at a gain for the day. Perhaps it was the cognitive dissonance of USDA opining that 2021/22 U.S. corn exports will not be as large at the same time China has been buying the crop. Wheat had been on the defensive all morning, so it was a different story. Nonetheless, the report may have set the tops in the market, unless the weather situatio...
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.