Last month's feeder calf placements data points to a changing supply situation for the beef market next quarter. Similarly, feedlots' fed cattle marketings show the industry is remaining current on inventories. Analysis of the fed cattle supply situation offers insight into trading strategies that could be profitable going forward.McDonald’s just announced that it will start using all fresh beef in its Quarter Pounder hamburgers, the latest update from the fast-good giant, and there are typically significant market impacts when it makes such a move. Cattle on Feed According to USDA’s Cattle on Feed Report (COF), there were just slightly less than 10.8 million head of cattle in feedyards of 1,000 head or larger capacity as of 1 March. The...
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.