GOOD MORNING, Prices are firmer as more rumors of possible Chinese business and hot and dry temperatures for this week underpin futures. Wheat leads the board in strength at all three exchanges on the back of comments from the wheat tour in North Dakota. Wheat: Funds were net sellers yesterday as Egypt's tender was awarded to Ukraine and Romania but appear to be covering some of that position today, triggering buy-stops in the process. The Wheat Quality Council Tour (WQC) started and scouts say spring wheat yields are averaging 29.5 bpa, well below the 45.6 bpa for the same routes in 2019. Scouts saw the aftermath of severe drought in the southern and eastern route impacting yields. Plants are reported...
What You Need to Know Today: Cattle futures extended their sharp selloff Friday as weakening cash cattle prices, deteriorating feedlot profitability, and reduced packer demand continued to weigh on the market. The inability of futures to sustain a rally following last week's bullish Cattle on...
As predicted, the Federal Reserve held rates steady at the last meeting before the midterm elections, likely in part because of the election (see WPI 19 October and 22 September). The decision comes at the tail end of a midterm election cycle that has been marked by the two parties campaigning...
Key Takeaways: WPI’s new EU rapeseed crushing margin models point to weaker processing returns over the next four months due to higher rapeseed procurement costs and weaker product values. Statistical forecasts call for German crushing margins to decline from €181/MT to €...
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.