The projected drop in soybean imports during January and February should give the major crushers some added breathing room as they work through the massive buildup from the fourth quarter of 2015. However, it could also be an omen as China’s livestock market appears headed for a major reset in several areas. Oilseeds Soymeal Inventories Continue to Rise Soymeal inventories rose 70,000 MT (+4.5 percent) to 1.62 MMT in the first week of January 2016 and were 601,800 MT (+59.1 percent) higher than the same week a year ago. Among the surveyed regions, they fell sharply last week to 198,900 MT (-33.7 percent) in northern China and 211,100 MT (-31.9 percent) in Shandong Province. In stark contrast, soymeal inventories increased to 174,300 MT (...
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.