Several factors have helped support this week’s higher grain and soy prices, but it will be whatever tone is set by this Friday’s WASDE that will determine whether the rally is sustainable. General Comments Following Monday’s pattern, grain and soy futures prices continued the pre-report rally. Wheat was the leader, scoring the highest prices in at least two months. KC HRW futures closed up 13 cents or more, Chicago SRW contracts were up better than 11 cents in most cases and MGE HRS futures finished up about a dime. The overnight session price action was mixed, although prices mostly traded lower. The rally did not get started until after the day session opened.It is hard to point at specific reasons behind this week’s rally as it seems...
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.