GOOD MORNING, Prices are mixed this morning, lower wheat and higher elsewhere. Outside markets are sharply higher with US stocks up over 600 pts, indicating we see a "risk-on" day of trade. Beans are higher as the market finds end-user buying after China suggested that they intend to increase the purchase of Ag goods. The purchase of beans by China could be in part for crushers, and in part for reserves, and estimates are that they may need as much as 23-28 mmt for the Sep. time period until Brazil's harvest takes place in 2021. It was reported in a story by Reuters that China's Ministry urged food companies to boost supplies on fears of further Covid-19 disruption. The article went on to say that both...
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.