Trading overnight and again during the day session were similar, while flooding from the heaviest storm-related rainfall ever to hit the continental U.S. has shut down export grain terminals along the Texas coast and closed oil refineries as well as stopped vessel and rail movements. General Comments 31 August is the first day for delivery intentions against September grain and soy complex futures contracts, and yesterday (29 August) saw quite a scramble by traders to exit positions in those contracts. Open interest (O/I) in September corn dropped 51,439 contracts to about 79,000. September O/I in soy complex contracts also dropped over 8,000 in the case of soybeans, more than 12,400 for soymeal and about 7,500 for soyoil, leaving relati...
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.