The Market Oilseed markets have certainly seen no lack of volatility over the past several weeks, with the EPA’s surprise, bullish Renewable Volume Obligation (RVO) mandates release a little less than two weeks ago, which was followed by the Israel-Iran conflict. That conflict drove crude oil – and by extension, vegoil – prices sharply higher and pushed crush margins to new, seasonal highs. Now, favorable weather is driving the soy complex sharply lower with new crop soybeans plunging below technical support and threatening the $10.00 mark. Spot soymeal futures hit an eight-year low on Wednesday and are lower still on Thursday, while soyoil futures are trying to stabilize near the 52.00 cents/lb level. C...
What You Need to Know Today: Corn, wheat, and the soy complex all formed new contract or at least rally highs to close what has become one of the most uniformly bullish weeks in CBOT history. Escalations in the fighting between Russia and Ukraine and attacks on civilian merchant vessels show n...
The Federal Reserve Board holds an annual meeting in Jackson Hole, Wyoming, each year about this time, and this year’s meeting is now. It’s always a “must-watch” event, but this year, amidst persistent inflation and with a new Fed chairman, Kevin Warsh, it drew additiona...
You cannot escape the vortex of opinions about water scarcity in the Western United States, especially in the drought-stricken Colorado River Basin. Agriculture is the villain in many of these editorials. Agriculture uses too much water, so it should use less, is the refrain. We all wish it was...
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.