Traders and analysts were decidedly bearish soybeans heading into the WASDE, but USDA’s report was anything but bearish the U.S. market. USDA cut U.S. soybean yields and production and increased ending stocks by a smaller-than-expected amount, causing a 50-cent rally in soybean futures after the report. The WASDE was bullish wheat and neutral/bullish corn, despite record-large U.S. yields. Funds were massive buyers in the soy complex today and also extended their length in wheat and, to a lesser extent, corn as well. The big surprise from the November WASDE was in U.S. soybean yields, which USDA cut rather than increased, defying pre-report estimates. USDA shaved 0.3 BPA from the 2021 U.S. soybean yield (now forecast at 51.2 BP...
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.