Long-Term Demand Destruction in Feed Sector While corn and soybean futures prices jumped 41 percent and 33 percent, respectively, since the start of June, futures prices for hogs and feeder cattle have dropped by 19 percent and 8 percent because of increased slaughter. But behind the bow wave of slaughter are smaller herds and flocks that reduce feed demand over the longer run.We're already seeing short-term demand destruction. Ethanol production is down about 10 percent and recent monthly exports are now down about 22 percent compared to year ago. Both those categories of use, however, can bounce back with supply. Feed use reductions will be longer lasting. We will have a bow wave from lower numbers of broiler chicks placed on feed t...
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.