Grain and soy prices traded slightly firmer overnight, but they faded to red early in the day session and stayed that way through the close. Some of the weakness may have been related to the Fed’s impending rate cut even though it was so widely expected. General Comments Finally! The U.S. Federal Reserve Bank raised its fed funds rate 0.25 percent, which puts it in a range of 0.25-0.50 percent. The Fed lowered the rate to near zero in 2008 during the depths of the financial crisis, and that is where it remained for more than seven years. The last time the Fed raised its interest rate was in June 2006 – nine-and-a-half years ago. Large U.S. banks were quick to raise their prime rates a like amount following the Fed’s announcement. It is a...
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...
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.