World Perspectives
livestock

Beef and Cattle Market Anomalies

There are important anomalies in the cattle and beef markets this year. Futures have shown amazing strength, buoyed largely by export demand. Now as fed cattle prices enter a period of seasonal decline, there are factors that suggest 2019 and 2020 may continue to differ from recent years. Heifer Slaughter As a share of steer slaughter (federally inspected or FI), heifer slaughter is running well above the five-year average and 2018 values. At the feedlot level, the share of heifers in feeder cattle receipts has also been consistently running above year-ago levels. Should these trends continue, it could signal lower beef heifer retention rates for 2019 and 2020 that would ultimately tighten cattle supplies in 2020 and 2021.

Fed Cattle W...

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Summary of Futures

Mar 26 Corn closed at $4.3125/bushel, up $0.0375 from yesterday's close.  Mar 26 Wheat closed at $5.525/bushel, up $0.1525 from yesterday's close.  Mar 26 Soybeans closed at $11.3725/bushel, up $0.1325 from yesterday's close.  Mar 26 Soymeal closed at $307.9/short ton, up $4.9 fr...

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From WPI Consulting

Forecasting developments in production agriculture

On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.

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