Volatility returned to the markets today. After a benign overnight session, corn, soybeans, and wheat all headed lower on bearish export sales numbers. There after, however, reductions in Argentina’s soybean production forecast pulled that market higher while wheat found support on technical buying. The grains markets closed lower today, on average, but the late-day rally pared losses substantially. Outside markets are mostly higher today with the Dow and S&P 500 Indexes up fractionally after larger gains this morning. The CBOE VIX index continues to fall, moving below 13 early this morning. COMEX gold is $5 higher after finding support at the 40-day moving average. The Dollar Index is continuing its slide, falling 36 point...
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.