GOOD MORNING, Prices are lower across the board to begin the morning as funds continue to put on new short positions in lieu of weaker macros, lack of demand, and neutral growing conditions. The historic collapse in crude oil futures continues to weigh on commodities in general, but specifically those linked with Ags such as corn and soyoil, which are both making new lows this morning. Sharply lower palm oil impacts soyoil futures, which trades towards the lower end of prices in mid-March. Only wheat futures manage to trade higher as concerns over tightening global supplies on the pandemic and dry weather continues. Crop progress reports were released last night and were in line with expectations. It's early in the...
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.
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...