It can’t be said that the increased prospects of a Fed interest rate hike in June had any real impact on grain and soy markets today. Prices were slightly lower in quiet overnight trading and wound up the day session in mixed fashion. General Comments The minutes of the Fed’s April meeting were released today, and (to the surprise of many Fed watchers) they reveal a stronger-than-expected sentiment for raising the interest rate in June. That plus recent statements by various Fed officials appear to substantially increase chances of a rate hike next month, which heretofore analysts had called about 10 percent at best. The minutes show considerable support for the increase, assuming the economy has picked up during the second quarter and in...
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.