Post-WASDE trading saw fund liquidation start in the overnight session and continue into the day session. Soybeans and corn saw the greatest pressure while wheat was lower on improved weather for the U.S. HRW-growing region. Soymeal continues to weaken while the soyoil market posted a fresh contract high. The markets now seem to be trying to forge trading ranges heading into the March Planting Intentions report while also flushing out weak longs. Funds are thought to have sold some 30,000 contracts of corn and 25,000 contracts of soybeans along with 10,000 contracts of wheat. Funds were modest net buyers of soyoil while selling some 8,000 soymeal contracts. End-user pricing interest was noted on the break. Outside markets were mostly...
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.