Recent analysis by WPI suggests the U.S. wheat market is poised for volatility in the coming months. A study of proprietary prices shows the increasing spread between high and low FOB prices has been a historical bellwether for large price moves.The wheat market may be preparing for a significant move in prices. WPI’s recent analysis of the spread between proprietary high and low FOB export prices for HRW and SRW wheat from the Port of New Orleans over the past year found it to be over $10/MT. Historically, spreads of this magnitude have often preceded major price moves. During the time period studied, increases in the high/low spread were positively correlated with rises in price volatility. When the HRW spread exceeds $10/MT, the average...
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...
Illuminating the value of technical research
On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.