Looking at the recently released meat price spreads from USDA can provide some hints as to what is going on in the livestock and wholesale meat markets. Retailers are having a difficult time maintaining margins on red meat. The August CPI data released this week showed beef prices up 0.7 percent on the month and 6.3 percent on the year. For pork, price inflation was down 1.9 percent on the year, it was up 1.8 percent on the month. Cattle producers, on the other hand, are faring well with high cattle prices. Those prices spiked in June to $188/cwt and held through July at around $185/cwt. For the past three weeks they’ve been just above $182/cwt. The August Cattle on Feed Report showed that July marketings as a percent of on feed inve...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.