The September WASDE is typically one of the most volatile reports of the year with USDA’s “objective yield” assessments of corn and soybeans prone to elicit strong market reactions. This year was no exception as the market misjudged USDA’s plans for the soybean yield and ending stocks, and had to scramble to rally and ration new crop demand in light of the new information. Soybean futures ended 76 cents higher for the day and are technically poised to rally further. Corn futures posted 9-13-cent gains as well and are also ready to challenge key technical resistance levels. USDA didn’t change its expectations for the 2022/23 wheat crop and that market generally drifted lower amid some pressure from bull corn or...
What You Need to Know Today: Markets got a surprise with a corn yield of 181.2 bushels/acre in the October WASDE, above the average estimate of 177.6 bushels/acre and up from USDA’s September estimate of 178.5 bushels/acre. Although stronger demand is expected to absorb some of the addit...
Key Takeaways: On Friday afternoon, President Trump announced that Russia will “immediately supply over 300,000 Tons of Diesel Fuel” to the United States. The deal, typical of this administration, is light on details but promises an additional 500,000 tons in November and 1 m...
The USDA has lowered its 2026 red meat production forecasts slightly while forecasting a slight increase in broiler production. Beef is now projected at 24.802 billion pounds, 75 million pounds less than in September. Cow slaughter is expected to be up; however, this will be offset by lower ste...
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.