The CBOT opened on a mixed note with early selling pressure developing in the soy complex. By the afternoon, however, continued demand corn and soybeans pushed those markets higher while wheat futures were lower. Wheat was pressured by higher Australian production estimates as well as bear spreading from the corn market. Some profit taking was noted early in the day, but funds continued to extend their newfound length in corn and soybeans. WPI looks for the CBOT to turn sideways heading into Friday’s WASDE report. Many of the technical upside targets have been achieved and most ag markets are starting to turn overbought. The market has priced in a significant decline in the U.S. corn and soybean crops, as well as the strong demand pa...
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.