From any fundamental viewpoint, the current supply/demand outlook for U.S. wheat is quite bearish. The most important reason why, in our opinion, is the poor export prospects.USDA/FAS reported today that U.S. wheat export sales for the week ending 29 October totaled 3.1 million bushels (84,600 MT). Export wheat shipments for the same week were 6.5 million bushels. Such low weekly volumes are almost embarrassing for the one-time world’s largest wheat exporter, and they are stark evidence of how little importance the U.S. has in today’s world wheat market. Using USDA’s latest estimate of U.S. and world wheat exports, the U.S. will provide only 15 percent of the world total in 2015/16. USDA’s estimate of 2015/16 U.S. wheat exports (850 million...
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.