Soymeal was the upside leader (and one of the few markets to finish higher) on Tuesday as a combination of tight spot supplies and strong feed demand bolster physical prices. Soymeal futures surged to new contract highs on heavy volume, which helped pull the soybean market into the green as well. Past that, the CBOT was almost exclusively lower with wheat and corn continuing their respective selloffs. Even the livestock markets, which face a bullish supply outlook, turned tail and posted large losses for the day. Weakness in cattle futures was related to weakness in the beef cutout while the hog market selloff was related to a slowdown in slaughter levels and suspected weakness in packer demand. Funds were net sellers in corn and wheat for...
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.