While the May USDA WASDE numbers projected another season of record or near-record yields and production, there are implications for the margin of error between adequate and plentiful supplies of feed grains and oilseeds if those big yields do not materialize.This month’s USDA reports, released 10 May, triggered a massive rally in the soy complex that dragged corn and wheat along for the ride. Smaller-than-expected world and U.S. ending supplies for soybeans drove this latest move higher. Corn ending supplies were also slightly smaller than expected. Following are a few key points covered by Bob Kohlmeyer and John Baize on the day the report was issued that are important enough to highlight again:The chart below shows world corn production...
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.