The CBOT saw more bullish influences on Monday from Friday’s WASDE report in which USDA slashed the 2024 U.S. corn and soybean yields. After considering the numbers and implications over the weekend, traders decided there was enough demand for both products and, if USDA’s latest numbers are correct, tight enough supplies to justify another day of gains. Soybeans posted near-30-cent rallies for the day while corn ended 6-8 cents higher, and wheat scored double-digit gains in spillover trade. The Export Inspections report was bullish the three major markets as well and helped keep the upward momentum for the day. The post-WASDE price action has corn and soybeans moving into new trading ranges that have yet to be fully defined while wheat is t...
What You Need to Know Today: The cattle market rebounded sharply this week, with January feeder cattle futures gaining $16.98/cwt and February live cattle futures advancing $7.60/cwt since last Friday. Tyson Foods' plans to restore a second processing shift at its Amarillo, Texas, facili...
Tuesday’s CPI report from the Bureau of Labor Statistics (BLS) showed inflation roaring back stronger than expected in October. That probably locks in another rate hike – which was expected anyway – at the Federal Open Market Committee (FOMC) meeting in December. Consumer pric...
Key Takeaways: The rationale for farm programs has changed significantly from their original intentions. Farmers’ incomes have grown sharply and have surpassed non-farm incomes beginning in the 1970s. Current farm programs are complex and focus on supporting risk management, environmenta...
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.