The Crop Revenue Coverage (CRC) program has provided U.S. farmers the same thing as an enormously good put option on up to 85 percent of their proven yields over the past several years. Unfortunately, that will not be the case to start the 2014 season.The Crop Revenue Coverage (CRC) initial and minimum price guarantees for spring planted crops in the U.S. are calculated during the month of February. The winter wheat guarantees were calculated from 15 August-15 September 2013. The table below shows the past three-year history of these initial price guarantee levels for the major crops. The 2014 column indicates what the price levels for this year might be if prices hold relatively steady through the month of February. These are based on...
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
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.