Equities markets reacted negatively to inflationary U.S. economic indictors and spread a risk-off mentality to commodities. The dollar rose in response to likely continued high interest rates, dampening export prospects. Soymeal and lean hogs were the only commodities to end in the green today. There is still too much supply relative to demand. USDA’s Export Sales report for last week was a little quirky. New wheat commitments for 2023/24 were at a marketing year low, but at least there were no washouts as some expected. Yet wheat sales for 2024/25 were almost as large as for the current crop. Some also expected washouts for soyoil, and while they were low, actual loadings at 1,800 MT were at a marketing year high...
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
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.