USDA will release its June WASDE (supply and demand) estimates tomorrow (Tuesday). The market is searching for answers about how greatly corn and soybean production will be impacted by the wettest planting season in modern history. Unfortunately, the report will likely not provide much insight for several reasons. - There is no way yet to accurately determine the final planted acreage of either crop. As pointed out in last Friday’s analysis, the surveys for the 28 June acreage update are being completed now, but their numbers might not be conclusive either. - The trade has centered its analytics on trying to guess the weather’s effect on planted acres. However, most have failed to recognize how negative the late planting dates...
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.