GOOD MORNING, Overnight highlights included a rallying corn market and new contract highs in canola futures. Dec. corn trades to new contract highs as funds are long, domestic basis is strong (South Dakota basis has rallied 27c in the past month), and weather in the US is too cold, which may be reflected in the crop progress numbers out tonight. Increased ethanol demand due to a return to normalcy, and demand from China continue to support pullbacks, even as corn fights for acreage for this season. There was talk in Washington of reopening CRP enrollment. While Brazil received some rainfall over the Safrinha corn crop, concerns are still around that it is not enough. Beans are higher as processors conti...
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.