The writing is on the wall that wheat export opportunities to Asian countries are likely to rise, especially for any global producer of a consistent product. The increases in global demand for corn and soybeans that have occurred in the past decade are somewhat reminiscent of events in the 1970s when the Soviet Union entered the global wheat market. In the case of wheat, corn and soybeans, a relatively sudden rise in demand resulted in sufficiently high prices to incentivize various nations to boost their production and enter the global export market. In each case, the expanding production eventually exceeded demand and there was a setback in price. However, the prior decline in global wheat prices did not result in the elimination of the n...
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.