Today’s WASDE let some air out of grain and soy markets, at least in the short term, with December Corn trading through the low end of its recent trading range and January Soybeans reaching a new contract low. General Comments USDA’s November WASDE made a tough year for grain and soy market bulls (if there are any) even tougher. Yield and production estimates for U.S. corn and soybeans were raised more than expected. Demand estimates for corn and wheat were lowered, and while estimated demand for U.S. soybeans was increased, it was not by enough to absorb the larger supply. The result was that ending stocks of all three were pushed higher than most market watchers expected. That the fresh estimates in today’s WASDE would be bearish...
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.