The CBOT opened on a firm note but aggressive selling pressure in wheat sent that market sharply lower and capped gains in corn futures. Soyoil traded sharply higher, supported by overnight gains in palm oil and strong technical buying, which helped the soybean and soymeal markets firm as well. The biggest news of the day was the Russian economics minister announcing that a proposal for wheat export tariff rate quota (TRQ) is under consideration. As detailed further in this week’s European Market Analysis from WPI, the system will likely be applied from 15 February through 30 June and would result in a $30/MT tariff applied to in-quota shipments. The announcement was friendlier to world wheat supplies than many expected, and co...
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.