The Dow Jones-UBS Commodity Index was up about 10 percent during the 5 April-25 May period with much of that increase due to soybeans, meal and corn. The primary force behind their surging prices has been the large inflow of noncommercial speculative money into these futures markets from managed commodity funds and hedge funds.The durability and dimensions of the current bull market in CME soybeans, soymeal and corn futures are truly impressive. To show in numbers just how much so, following is a table that compares 5 April and 25 May closing futures prices. For convenience, prices have been rounded to the nearest penny.The rally in soymeal and soybean prices has been remarkable. Corn’s rally has been much less so but still solid. July Chic...
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.