Lean hog futures continued their beatdown today while feeder cattle were similarly lower. Live cattle futures managed an unconvincing higher close but remain under pressure. Technical resistance worked against wheat futures today and soybeans fell in another day of active selling. Corn, as usual, didn’t do anything interesting as traders wait for tomorrow’s USDA reports. Outside markets are higher, though not offering much support to the ag complex. The S&P 500 and Dow are both in positive territory, apparently having decided a one-day selloff was good enough for now. The VIX index is back below 10 again (last quote at 9.74) as traders feel comforted by higher equity prices. The Dollar Index is off 51 points to 91.84...
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
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.