Selling in wheat was the dominant theme at the CBOT on Monday. Weekend news that private firms had made upward revisions to the Russian wheat crop, now forecast just shy of 80 MMT, pressured the CBOT to start the week. Unwinding of wheat/corn spreads helped the latter firm slightly while the soy complex was led by higher soyoil values. The USDA reported 260,000 MT of soybeans sold to “unknown” destinations in today’s flash export sales report. The sales included 8,000 MT for delivery in 2019/20 and the balance (252,000 MT) for MY 2020/21. The weekly Export Inspections report was neutral corn and soybeans while once again coming in bullish wheat. With only a few weeks left in the 2019/20 corn and soybean marke...
Macro: Treasury Squeezes Yields, the Dollar Gives Way Today’s markets are offering a lesson in pressure: it rarely disappears — it simply moves. The U.S. Treasury stepped into the bond market after long-term yields surged to levels not seen in nearly two decades. By announcing plans...
Key Takeaways: Weather conditions in Europe have continued to deteriorate following both the EU MARS’ latest balance sheet update and the August WASDE, leaving “official” estimates lagging behind the reality observed on the ground. WPI’s models anticipate a 4 perc...
Key Takeaways: With cattle supplies historically tight and packer margins deeply negative, beef processors are reducing excess slaughter capacity, with decisions over which plants to close driven by cattle availability, operating efficiency, and the ability to maintain high utilization rates...
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.