As the 2022 harvest approaches, farmers are already making plans for the 2023 crop with an outlook toward more potential volatility, especially on margins given the commodity markets and input prices. Many producers will look at hedging with supplemental margin protection crop insurance coverage (deadline to purchase is 30 September 2022); that coverage uses the mid-August to mid-September futures price for 2023 December corn ($5.97/bu) and 2023 November soybeans ($13.71/bu), and as they start to buy fall fertilizer. The good news is that nitrogen fertilizer prices have started to soften. The latest drop in nitrogen fertilizer prices followed the International Trade Commission (ITC) vote to end that investigation and decision not to impose...
What You Need to Know Today: Markets got a surprise with a corn yield of 181.2 bushels/acre in the October WASDE, above the average estimate of 177.6 bushels/acre and up from USDA’s September estimate of 178.5 bushels/acre. Although stronger demand is expected to absorb some of the addit...
Key Takeaways: On Friday afternoon, President Trump announced that Russia will “immediately supply over 300,000 Tons of Diesel Fuel” to the United States. The deal, typical of this administration, is light on details but promises an additional 500,000 tons in November and 1 m...
The USDA has lowered its 2026 red meat production forecasts slightly while forecasting a slight increase in broiler production. Beef is now projected at 24.802 billion pounds, 75 million pounds less than in September. Cow slaughter is expected to be up; however, this will be offset by lower ste...
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.