The agriculture sector is generally optimistic about 2020 based on a new trade deal with Japan in place on New Year’s Day, the progress of the USMCA, and the apparent deal struck with China. Weather is not likely to get worse, but the sheer volume of water means it will take a dry spring to get back to normal. Which raises the question: “what is normal?” Most economic overviews show the steady drop in farm income since the high mark of 2012, and an increase in farm debt over the same period. For example: • From 2012 to 2017, the farm sector saw the largest multiyear decline in net cash income in percentage terms since the 1970s. • Farm sector debt is again near peak levels of the...
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.