Regardless of what has caused or created this recent market rally, it has brought an enormous Christmas present to farmers and agricultural bankers in the form of much higher prices than expected just 30-40 days ago ahead of planting.It has been a phenomenal two months in the soy complex. November soybean futures have rallied more than $1.50/bushel ($55/MT) since 1 March. This has occurred in the face of U.S. ending supplies doubling, forecasts of record crops in Brazil and Argentina, record-large world soybean supplies, etc. It has been a rally that left fundamental analysts stunned and searching for reasons to explain to their clientele how this can happen. At the same time, the market has set open interest and volume records. It is even...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Key Takeaways: Consumer spending is a key driver of the U.S. economy, and the latest retail sales data indicate that spending remains robust despite inflation. In September, total retail and food service sales rose more than 6 percent year-over-year, with food service spending up 7 percent and...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
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.