World Perspectives

Fiscal Policy and the Federal Budget

With one day left before the 2020 election, one issue hasn’t received any attention, but it may be the biggest challenge facing policy makers starting in 2021: fiscal policy and the federal budget. We are now one month into the new FY 2021, and don’t have a spending bill for the rest of the year (that expired in December and will have to be finalized in a lame duck session of Congress).   We don’t have that fourth leg of the COVID relief support program finished either. That will either be taken up in the lame duck session, with election maneuvering cooled, or, based on the election outcome and control of the Senate, will be pushed until early 2021. But as the economy comes off its huge 33 percent rebound in GD...

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CFTC COT Report Analysis

Friday’s CFTC report showed that funds are slightly increasing bullish bets across the ag space, primarily in the soy complex and livestock futures. Managed money traders’ net ag position (the combined position across the soybean complex, the three U.S. wheat contracts, corn, and th...

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Market Commentary: No Raucous End to the Week

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North Dakota and Glyphosate

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feed-grains soy-oilseeds wheat

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feed-grains soy-oilseeds wheat

Market Commentary: No Raucous End to the Week

With no new input on fundamentals, traders passively went through the day making only minor changes. Monday’s crop progress report will provide some input, and especially focus on the May 12 WASDE. It will be the first keen look at the balance sheets for MY 2025/26.  It was the fifth...

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soy-oilseeds

U.S. Soybean Crush Margin Outlook

U.S. soybean processing margins have seen considerable volatility over the past month as multiple fundamental factors upended global oilseed and product prices. The most obvious influence was the recent trade war and tit-for-tat escalation in tariffs between the U.S. and, which was exacerbated...

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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.

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