GOOD MORNING, Funds headed for the exits as charts started to build in resistance leading to selling yesterday, triggering sell-stops. Funds sold 16,000 wheat, 45,000 corn, 30,000 beans, 12,500 meal, and 5000 soyoil. This is the kind of selling that often does lead to a market top, since these are significant totals, but technicals have to match fundamentals. It is particularly interesting as strong domestic demand will keep ending stocks of corn and beans near seven-year lows. In order to meet the higher production estimates of 21/22, the US has to have an ideal growing season. Looking at maps with the western Corn Belt extremely dry, tough to imagine that we are going to get all we need. Prices...
What You Need to Know Today: Markets got a surprise with a corn yield of 181.2 bushels/acre in the October WASDE, above the average estimate of 177.6 bushels/acre and up from USDA’s September estimate of 178.5 bushels/acre. Although stronger demand is expected to absorb some of the addit...
Key Takeaways: On Friday afternoon, President Trump announced that Russia will “immediately supply over 300,000 Tons of Diesel Fuel” to the United States. The deal, typical of this administration, is light on details but promises an additional 500,000 tons in November and 1 m...
The USDA has lowered its 2026 red meat production forecasts slightly while forecasting a slight increase in broiler production. Beef is now projected at 24.802 billion pounds, 75 million pounds less than in September. Cow slaughter is expected to be up; however, this will be offset by lower ste...
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.