Trading for the holiday-shortened week started with grains in the green during the overnight session as the wet U.S. weather pattern remained in place over the weekend. Corn farmers are quickly running into the final planting dates for crop insurance eligibility, and the odds of 5 million or more prevented planting acres are increasing with each passing day. The markets are aware of this and quickly added a weather premium last night. The day session featured corn, soybeans and wheat all moving higher at the open and adding to gains from there. Funds are entering new long positions in corn and aggressively exiting soybean shorts. The wheat markets continue to benefit from some spread trades as well as their own bullish developments. USDA&...
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.