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: 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.