Yesterday’s price pressure and commensurate rise in open interest suggested a fair number of new short positions were initiated. Today, however, positive news on U.S.-China trade talks sparked a modest rally in soybeans, wheat, and corn that likely saw many of those new short positions erased. The U.S. Trade Representative’s office said today that China had pledged to buy “a substantial amount” of ag and energy products from the U.S. That was (obviously) construed as bullish for ag markets, and traders responded accordingly. Wall Street is slightly higher with the S&P 500 and Dow Jones 30 indexes in the green for the day. The latest minutes from the Federal Reserve show central bankers are not eager to rai...
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.