Grains and oilseeds nearly all traded lower to start the week with profit taking driving most of the action as the CBOT enters another holiday-shortened week. The only market to finish higher was soyoil, where a geopolitical tension driving bounce in crude oil helped support the vegoil. Improvements in South America’s weather forecast, particularly Argentina, also helped pressure the CBOT Monday with export competition rising around the world for key U.S. products. While markets settled lower, they by and large did not post technical developments that substantially alter the near-term outlook, especially for this holiday-shortened week. WPI looks for corn, wheat, and the entire soy complex to remain defensive this week, but still with...
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.
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...