Today’s WASDE forecast for total red meat and poultry production was down from last month based on a slightly higher beef production forecast, but more than offsetting pork and poultry. As we have discussed recently, the number of cattle on feed in March was a monthly record for the second consecutive month with a record on-feed inventory, and in January the on-feed inventory was the second highest on record, after a monthly record for placements in December 2021. Placements have been higher as well, and non-fed cattle slaughter is running high this year. This is all supporting higher beef production forecasts. As for pork, the total inventory of hogs and pigs was at its lowest since June 2018. Further, farrowing intenti...
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.