Weather forecasts and changes thereto continue to drive the CBOT. Markets were initially weaker on overnight results from the GFS model that favored better rain for Iowa while the early-morning EU model maintained a dry forecast for the central Corn Belt. That helped corn and wheat rally, though the soy complex remained under pressure from outside markets. The Biden administration is rumored to be considering “small” cuts to the renewable fuels mandate for 2021 and 2022. The administration is trying to balance keeping the refining industry (and its labor unions) happy and furthering its climate change agenda. The administration is also abandoning a plan by President Trump that included waivers. WPI notes that the s...
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.