The CBOT opened mixed but quickly found solid selling pressure as wheat futures tumbled lower under pressure from yesterday’s WASDE that forecast large world ending stocks for 2020/21. Exacerbating the move lower, and providing widespread weakness to commodity markets, were comments from Federal Reserve Chairman Jerome Powell that suggested additional monetary stimulus will be needed. Commodity markets were already grappling with expectations for large supplies, and signals about continued demand weakness and/or slow growth added to bearish sentiment. Outside markets posted modest losses on Wednesday with U.S. equities pressured by the Fed Chairman’s comments. Investors are cautious about the economic recovery, espe...
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.