The CBOT continued its mostly range-bound trading affair on Wednesday with the ag markets seeing little fresh news to drive price action one way or another. Wheat futures hit new contract lows but recovered from that selloff to end slightly higher, though the market seems committed to staying near current levels. That statement could also be made of the soybean and corn markets where low-volatility trade has taken over since the Thanksgiving holiday. Traders seem to have become resigned to sideways trade heading into next week’s WASDE report and may have to continue that pattern into the holidays as the December report seldom offers big surprises. The most interesting price action right now is in the livestock markets where hogs look to be...
What You Need to Know Today: A case of New World Screwworm was detected in Texas, the first in the U.S. since 1966. With cases creeping closer to the U.S. border, it was only a matter of time. APHIS confirmed that larvae were detected in the umbilical area of a 3-week-old calf in Zavala County...
WPI recently completed an expansion of our methodology for estimating and forecasting U.S. and global soybean crushing margins. The new approach incorporates the energy market’s expanding influence on the oilseed sector and the structural changes in global biofuel demand. This report is i...
Key Takeaways: The situation in the Persian Gulf is unchanged with any ceasefire still subject to interruptions from both U.S. and Iranian attacks. The Strait of Hormuz remains effectively closed, though somme vessels are still sneaking out after turning off their AIS. The U.S. fired a H...
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.