GOOD MORNING, Prices overnight continued strong and posted several more contract highs. Funds were adding to long positions in a big way yesterday, and when that happens the expectations are for much higher prices to emerge. Funds could be long an estimated and record 430K corn now, and are likely record long in beans as well. In the PM session, gains were added on technical merits alone, as May beans drive over $15.00 and Dec corn trades toward $5.50. May soyoil surges to over 61c, and upper targets are now moved back to 65c to 70c based on this strong action. Canola prices hit new contract highs as well. The most powerful market price actions are when fundamentals match technicals, and cash as well. Pu...
Beef packer margins deteriorated to -$261/head last week, down $19 from the prior week as weaker beef values (especially the Choice cutout) were offset by firmer fed cattle prices, which further compressed packer profits. The cutout slipped to $387/cwt while fed cattle prices held above $259/cw...
What You Need to Know Today: The U.S. and Iran reportedly agreed to pause hostilities to allow vessels to transit the Strait of Hormuz this week (theoretically, at least). There were some rumors of a possible Chinese blockade against Taiwan. Analysts are looking for the largest U.S. 1 June cor...
Proposition 12: The National Pork Producers Council (NPPC) has advocated for a fix to Proposition 12, the California animal welfare law, in the Senate farm bill. The House version of the farm bill included a fix, but the Senate bill, based on the discussion draft released by Chairman John Boozm...
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.