GOOD MORNING, Prices are mixed this morning as corn remain mired in bear market territory as values are attached to struggling ethanol. Bear markets ignore friendly input, so even the recent Chinese corn purchases from the US is not enough to counter what could be a growing carry-out. The decline in gasoline demand due to Covid-19 amidst work and travel restrictions is the over-riding bearish component to this market. According to the EIA, US motor gasoline demand was at roughly 6.7 million barrels for the week ending March 27, down 25% from the prev. week. US ethanol use may see an estimated total decline of 741 mln gallons in the March through May time period, which would result in a reduction of 256 mil bu...
Key Takeaways: Dry bulk markets remain mixed with Capesize vessels seeing continued pressure from weaker demand while fixtures and rate strength gradually increases towards the smaller vessel classes. Tanker markets are pulling back from their recent highs as tonnage moves out of the Mid...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
Key Takeaways: Texas illustrates the assumptions underlying the 2025 FMMO reform; Idaho exposes their limitations. The Southwest order blend (roughly 27 percent Class I, 32 percent Class III and 31 percent Class IV) exposes Texas producers to every lever USDA adjusted, with a near-neutral proj...
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.