WHEAT: USDA’s December 2021 estimate is for a small increase in U.S. ending stock because exports are lowered 20 million bushels. U.S. export prices are expected to remain elevated the rest of 2021/22 and diminish U.S. competitiveness. Projected 2021/22 U.S. ending stocks are raised 15 million bushels to 598 million but are still 29 percent lower than last year. The projected season-average farm price (SAFP) is raised $0.15 per bushel to $7.05. Global wheat outlook supplies were increased 4.3 million tons to 1,067.5 million. Despite upward revisions to global stocks this month, they are still at a 5-year low. ...
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.