GOOD MORNING, The markets are going to open on a mixed note today, with some short-covering on a larger than expected short position for corn and beans, while spread trade continues to dominate. The Feb WASDE will be released tomorrow, but it may not offer up much of an impact. The real factors moving the markets would be control over the Coronavirus, which continues to spread, as well as whether China begins to purchase anything per the Phase One agreement. Coronavirus infections are up to 40,500 cases with 910 deaths. Beans attempt to build on support over $8.80 March, while corn moves either side of $3.80 using it as a pivot point. March wheat appears to have some road-blocks ahead of it,...
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.