The December SRW and HRW contracts closed lower today, while December HRS added value. These three wheat contracts often move in unison, but not always. And they have many other differences that define them. HRS is typically priced higher due to its greater protein content and thus demand, especially for use in high quality breads. The price of HRS is more strongly inversely correlated with supply than it is for HRW, and SRW shows the least correlation between supply and price. The latter may be influenced by the larger volume of speculative trading in SRW than the other two wheats. Carryover through the years for the hard wheats (HRW and HRS) have been trending down but has been trending higher for SRW. Meanwhile, the long-term upwa...
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.