GOOD MORNING, After placing new contract lows or low -end prices for ranges, prices are firmer this morning, (except for wheat), on a combination of bargain-hunting and short-covering. Meal placed a key reversal yesterday which suggests a reverse of trend is coming, and that enabled beans to also put in a constructive day of trade as well. As noted in previous cycle lows, key reversals are one of the most important stabilizing or reversal signals that point to eventual higher trade, and pullbacks may now find more buying interest. Beans bounce as media reports that a major Chinese crusher purchased cargoes of US beans out of the Gulf in order to shore up reserves, as reported to Agricensus. Inquiries also con...
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...