CORN: USDA reduced U.S. corn production to 13.730 billion bushels, down 200 million as an increase in yield is more than offset by a 1.6 million acre cut to harvested area. Exports are reduced 150 million bushels to 1.925 billion, reflecting the slow pace of shipments through December, and the lowest level of outstanding sales as of early January since the 2019/20 marketing year. With supply falling more than use, 2022/23 corn stocks are lowered 15 million bushels. The season-average corn price received by producers is unchanged at $6.70 per bushel. Foreign corn production is forecast down with declines for Argentina and Brazil partly offset by an increase for China. ...
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.