One of the most consistent trading patterns over the long history of grain futures markets is described in the old cliché, “buy the rumor, sell the fact.” In our also long experience there have been literally countless instances when bullish rumors of one sort or another have prompted traders to buy grain futures. That has been a common feature of grain futures markets. But when those rumors were confirmed to be true, many of those previous buyers quickly sought to sell the futures contracts they bought in response to the rumors. Once the bullish rumor is confirmed, short term speculative traders (we put many managed funds in this category) often try to immediately cash in any rumor-inspired paper profits they have...
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.