At this point it is hard to see grain and soy markets staging a major rally barring a South American weather problem. Unless adverse weather intervenes in some important producing region in a way that shakes up world S&D and gets U.S. corn and wheat back into the export game, it is hard to imagine any kind of sustained price rally.The reality of big crops has settled in. However, it is not as though this reality suddenly burst out with the November WASDE. In truth, it has been around for some time. For some months the question has not been whether or not crops would be big. Rather it has simply been how big. The November WASDE has basically answered that question. It is worth noting that the current spot futures contracts have traded in...
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.