CBOT trade was mostly a continuation of last week with corn falling lower amid declining ethanol demand and expectations for aggressive planting over the weekend. Soybeans and the entire soy complex traded both sides of unchanged today before settling lower as demand remains a concern and there is, as of yet, no supply shortage to spark a rally. SRW futures broke notable technical resistance this afternoon while HRW futures are retaining a more supportive chart formation. Funds were net sellers for the day, liquidating some 5,500 contracts each of corn and soybeans, while selling 1,500 contracts of SRW wheat. It seems increasingly likely that corn futures will test last week’s contract lows and soybeans could follow as well. Th...
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.