USDA's latest WASDE report puts the new Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) programs more in play with news of good crop conditions and projections of increased ending stocks for corn and soybeans.Last week we reported on the farm bill implementation hearing held by the House Agriculture Committee's subcommittee on General Farm Commodities and Risk Management. We noted that between the two programs that farmers can choose, Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC), there were certain crops to watch as to whether price or revenue coverage was the correct option. These included wheat, rice, sorghum and even corn for the reference price under the PLC coverage. USDA's latest WASDE report puts the ne...
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...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...
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.