The value of hogs has fallen 15 percent over the past year and Quebec, Canada’s largest pig producing province, is trying to shed animals. The plan is to spend C$80 million to reduce the output of animals by 1 million head. But the problem may be bigger than that. Quebec has 53.8 percent of the Canadian pig farms but only produces 31 percent of the total pig crop. At a time when livestock operations are consolidating to achieve economies of scale, Quebec has a long way to go. Quebec has the advantage of producing the second largest amount of corn and soybeans for feed, and Ontario is adjacent with the largest feed output. Still, the province lacks efficiency on the farm and that impacts profitability at the processors. Though n...
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...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.