It was mostly a day in the red as coronavirus anxiety continues to haunt investors. Fear of betting against calamity is understandable since a story of outright disaster is easy to imagine. Rabobank predicts another four months of supply chain disruptions except that both nearby and more distant futures contracts are bearing losses. In the SRW contract, at one point today, nine SRW contracts were in the red but July 2021 showed a modest gain on small volume. By the end of the day, it was only the distant contracts losing value. UNCTAD says that China’s exports of manufactured goods will be down $50 billion this year. The effects of COVID-19 will reverberate through the global economy for many months to come. One notable observation i...
What You Need to Know Today: Cattle futures extended their sharp selloff Friday as weakening cash cattle prices, deteriorating feedlot profitability, and reduced packer demand continued to weigh on the market. The inability of futures to sustain a rally following last week's bullish Cattle on...
As predicted, the Federal Reserve held rates steady at the last meeting before the midterm elections, likely in part because of the election (see WPI 19 October and 22 September). The decision comes at the tail end of a midterm election cycle that has been marked by the two parties campaigning...
Key Takeaways: WPI’s new EU rapeseed crushing margin models point to weaker processing returns over the next four months due to higher rapeseed procurement costs and weaker product values. Statistical forecasts call for German crushing margins to decline from €181/MT to €...
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.