While grains were 19 percent lower on the S&P Goldman Sachs Commodity Index (GSCI), energy was down 41 percent. However, there may be a silver lining to this commodity cloud going into 2016.Commodities as an asset class experienced another bear year in 2015 with all six sectors (precious metals, base metals, energy, grains, soft commodities and meats) down on the year, although softs made gains in the fourth quarter (Q4). The composite index moved up 12.64 percent in Q4 to almost break even on the year at an annual drop of only 0.74 percent. Some supply shocks helped frozen concentrated orange juice (FCOJ) futures appreciate 32.64 percent during the last quarter. Sugar rallied as well from just over 10 cents/pound in late summer to high...
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
Illuminating the value of technical research
On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.