Commodity markets were mixed today, while Wall Street traded higher after President Trump said the Iranians still want to negotiate after he closed the Strait of Hormuz. The result is baffling to some, but the market reflects investor expectations about future corporate earnings and growth rather than immediate conditions. Higher oil prices boost inflation and thus stall interest rate cuts, slowing the economy, but corporate earnings are still growing, bond yields have improved, and broad measurements of growth remain intact. Geopolitical events are unsettling but have historically imposed a limited long-term impact. That is not to say they are without consequences. Oil The petroleum market may incur the largest impacts from the war...
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.