One would expect trade to calm down the day following a major USDA report. That was certainly the case to an extreme with today's market. General Comments Overnight grain and soy futures trading saw a modest price boost as a reaction to yesterday's post-report decline. However, trading volume was quite low, and we would be hard-pressed to describe the slight recovery as a reversal. We say this even though markets managed to hang on to positive numbers at the close of the day session. Overall, prices traded in narrow ranges on both sides of Tuesday's closes in choppy fashion. Corn's trading range was only 5-6 cents. Wheat prices held in an 8 cent range or less, and even soybean prices traded narrowly in a 12 cent range that was only about...
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.