After a week of rolling, November contracts expired today and liquidation begins in the December contract. Otherwise, the market remains caught in sideways trading, which pushes opportunity into the spread trade. The USDA Export Sales report would ordinarily have influenced the day, but it is postponed until tomorrow due to the federal holiday this past Monday. This leaves talk about trade talks as an influence, which isn’t a very reliable factor. There is too much supply and to find demand it needs to get priced properly. There is a bottom somewhere, but basis remains higher, reflecting producer reluctance to sell even at these prices. Perhaps it also indicates too much isolation from real market forces. At the same time selle...
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.