Key Takeaways:
Despite rising cost pressures — including the recent run-up in fuel and energy costs — U.S. cow-calf producers are facing another year of record-breaking revenues and net returns for 2026. Cost pressures — particularly non-feed variable costs — and drought remain the key risks to this otherwise rosy outlook. These financial incentives are encouraging an expansion of the beef cow herd, with heifer retention forecast to hit 3.4 percent in 2026. WPI advises clients that strong risk management on both costs and revenues is important this year to protect the massive margins the market is currently offering.
Detailed Analysis As WPI readers likely know well, net returns and profits for Southern Plain...
Macro: Relief Meets Reality July’s CPI report matched expectations. Headline inflation eased to 3.4 percent year over year, while core inflation declined to 2.5 percent. On a monthly basis, headline CPI rose 0.1 percent and core increased 0.2 percent. Equities and the U.S. dollar traded h...
Key Takeaways: Corn yield came in below expectations at 180.7 bushels per acre, validating WPI’s view that last year’s exceptional yield may have anchored analyst estimates higher. Despite slightly higher production for corn, stronger export projections tightened the balance sheet,...
