Grains Market Overview Last week’s trading in Argentina was shortened as both Thursday and Friday were holidays. Additionally, before the week began, the government announced new measures for an agricultural exchange rate, i.e., recreating the famous “soy dollar”. There was a lot of uncertainty regarding the scope of the new program and at one time it was believed that it could cover other commodities such as wheat, corn, barley, and sunflower, etc. The final policy, however, only applies to soybeans and regional economies, but there are those who think that it may still include other commodities. As always, the government omitted wheat and corn under the guise of "taking care of food prices" (i.e., trying to minimi...
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.