Live cattle futures dropped like a rock through early June but may have overshot the fair value of the underlying commodity. This spring, large fed cattle supplies allowed packers to reduce offer prices despite robust beef demand and excellent slaughter margins. Outside the cash cattle market, however, a significant portion of the futures sell-off was driven by managed money funds exiting a massive long position. That liquidation rapidly pushed futures prices lower and may have created opportunities for cattle market bulls given changes in key fundamental trends. Heifer Slaughter Beef production is steady YTD despite a 1.6 percent increase in fed cattle slaughter. That dynamic has occurred because of changes in the share of steers...
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
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.