Every single number contained in today's USDA reports exceeded average trade expectations except for the one that is arguably of the greatest importance for markets.The highly anticipated and much debated USDA June estimates on planted crop acreage and 1 June stocks of grains and soybeans are finally here. The data released this morning is summarized in the following tables:Every single number contained in these reports exceeded average trade expectations except for planted soybean acreage, which is arguably the one with the greatest importance for markets. USDA’s estimate of 83,688 million soybean acres in 2016 is the largest on record, up more just over 1 million from last year but still about 280,000 acres less than the average trade gue...
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.