GOOD MORNING, Major events that traders will focus on this week include: weather, US/China trade negotiations, and the October 10 USDA WASDE report to be released at 11:00 Chicago time. General expectations for the WASDE include yield reductions for both corn and beans. Major question will be, did the stocks number already pencil in some of those reductions with the recent rally behind us, and the brunt of harvest ahead. Major trends are sideways/higher post stocks report, and funds have spent the majority of last week covering in some of their short positions. Commitment-of-Trader's report as of October 1 futures/options combined disaggregated managed money positions: beans: net short 8,730 meal: net...
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.