Several factors were responsible for the corn market's August meltdown as funds were caught leaning the wrong way. Farmers and others who had been at least slightly bullish were optimistic the Farm Journal Crop Tour would offer some bullish hope.The corn market, along with the wheat and soybean markets. suffered an August meltdown. It had been warm and mostly dry across the western Corn Belt during June and July. Every time they were revised, up to and including the July monthly revisions released on 20 July, the extended weather forecasts called for above-normal temperatures and below-normal precipitation. The market was in a bullish state in the days immediately following the 30-day July update that again predicted a warmer, drier-than-no...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
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.