At the end of the day, it was all about what USDA had to say. That turned out to be another bearish report on corn and, especially, soybeans. The wheat numbers were somewhat positive. Markets were hoping USDA would make just modest upward yield adjustments for corn and soybeans, but it didn’t. Instead, those yields were popped to the high ends of the pre-report estimates. The spring wheat yield estimate was also big. The numbers sent the soy complex to major losses, and that pushed corn and wheat lower as well. (There is a separate analysis today of the USDA report.) U.S. equity markets were also under heavy fire today. Turkey’s currency was collapsing, which prompted fears that Turkey might default on loans. Corn FUT...
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.
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...