In the U.S. the battle for planting area is between corn and soybeans but in Europe it appears to be between rapeseed and soybeans. In recent years, the area planted to rapeseed has been declining at the same time the soybean production area has doubled. Italy is the largest soybean producer within the EU, but German output has doubled in the past five year. The production area for soybeans in Canada has also been expanding but not at the expense of canola, which has also been enlarging. In the EU, producers receive on average a 10.5 percent price premium for rapeseed over soybeans. In Canada, the production cost of soybeans is 37 percent greater, and the marginal return over operating costs for canola is 13.4 percent better than soy...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
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.