Beef Cattle and DDGS Demand Last week, Livestock Roundup covered the topic of beef production which was the lowest 1 July beef herd since at least 1973 and a 21 year-low of beef production coming in 2014. With that bearish forecast still fresh in mind, we received EPA's announcement of the 2013 and 2014 required volume obligations for biofuels that hints at maybe lower ethanol mandates for corn ethanol and definitely lower mandates for advanced ethanol. Combining the cattle report and the ethanol announcement makes us think about DDGS.Not all of the drought and after-affects are over to date and seasonal beef production has actually spiked relative to cattle herd size. While this is the fourth straight year of production declin...
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.