Some producers will choose to spend less on crop inputs when profits are projected to be slim or none. That is the case as we head in to the 2014 planting season.If U.S. farmers reduce corn acres in 2014, they will increase soybean acres. We believe this will happen as a result of current price relationships and also because soybean input costs are far less than corn input costs. Direct costs for soybeans can be as much as $200 per acre less than corn. Some producers will choose to spend less on crop inputs when profits are projected to be slim or none. That is the case as we head in to the 2014 planting season. The table below is our first glimpse at what the U.S. soybean balance sheet might look like in MY 2014/15:Here are the assumptions...
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.