With May and its ag commodity rally in the rearview mirror, it seems an appropriate time to look at what factors are likely to influence the markets in June. Some of the same dynamics currently at play will certainly be relevant in the coming month, but history never repeats itself in the exact same way. The following crops and livestock outlooks offer brief examination of what factors may shape commodity markets in the coming month. Crops Outlook Weather The biggest factor for grain and oilseed markets will be the Midwest weather and planting progress (or lack thereof). The latest 30-day forecast from NOAA suggests June will hold normal temperatures for the Corn Belt but below-average temperatures for the Plains states. Moreover...
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.