General Comments The closing prices are a pretty accurate reflection of USDA's Outlook Conference comments plus ongoing demand. USDA foresees U.S. wheat plantings of 58.0 million acres, 3.6 million more than was seeded for 2011/12. It is also 1.5 million acres more than what was used in USDA's baseline projection last week. Much of the increase comes from bringing back spring wheat acreage that was not planted last year due to floods and excessive rains across the Northern Plains. USDA's projection for wheat portends a 2012/13 U.S. wheat crop of 2.3 billion bu or higher, which could lead to a carryout over 1 billion bu. To make matters worse, the IGC raised its estimate of 2011/12 world wheat production to a record 695 MMT, and it pegged...
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.