Last week’s hearings over proposed cattle market reforms took up nine hours across two days in both chambers of Congress. These hearings, like the six preceding hearings over the past year, were contentious, and now, a week later, there is no clear path forward. The Grassley-Fischer negotiated cash trade minimum bill is mortally wounded if not dead as more than 30 state cattle organizations opposed it and the National Cattlemen’s Beef Association (NCBA) also expressed its opposition during the House Agriculture Committee. There are other parts of the legislation that have more support. First, the contract library proposal that would establish a library for cattle formula and contract sales agreements like the swine indus...
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.
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...