After weeks of pushing commodity indices into near-record drops, everything opened and closed today in the green, except for feeder cattle. Reversing the oversold market was a global dynamic with higher closes in Paris, Dalian, Malaysian crude palm, etc. The volume was modest, except in lean hogs, but the direction was clear. The risk on day was prompted by reduced fears of recession as U.S. jobless claims were the highest since January in a signal that the Fed’s rate hike is cooling off the market. This is the first signal of a bottom and could encourage buyers that have otherwise been waiting to see how low it can go. As in the past, the market overshot in both directions. The way up was exaggerated by policymakers&rsq...
What You Need to Know Today: There has already been a strong run of flash soybean sales announcements in recent weeks, but more than 1.4 MMT reported this morning is an exceptionally large single-day total with major implications for the market. If the sales to China and unknown destinations w...
On Friday, at 6:57 AM, President Donald Trump announced, via a social media post, a 90-day window during which up to 300,000 metric tons of product for ground beef could be imported outside of tariff-rate quotas—a move aimed at bringing down costs for American consumers. This is the secon...
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.