U.S. hog and pork markets exploded this year with pork prices challenging the COVID-19 pandemic highs and hog values challenging record highs set during the 2013 PEDv outbreak. One key difference between today’s market and those of these prior periods is that hog slaughter remains near or above five-year highs. Clearly, the market is not rallying due to shortages of hog supplies, so hog/pork demand must be primarily responsible for the price gains. The year 2020 saw a huge pork export program that many (WPI included) thought was extremely unlikely to be repeated. Yet, despite the pork market’s rally, U.S. exports are down just 3.3 percent from 2020’s record breaking pace. That international buyers have yet to modera...
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.