General Comments We suppose today's market was the drought version of "Turnaround Tuesday." Instead of running 20-30-40 cents higher like Monday's market did, corn, soybeans and wheat all traded in narrower ranges on both sides of unchanged before ending the day session indecisively with only small price changes up or down. Overnight trade also was mixed although volume was heavy. We see today's price action as reflecting speculative longs' profit taking offset by fresh buying from managed money and possibly some end-users. Speculators are not giving up on the bull market, but some are banking profits, hoping for a price dip to replace their long positions. However, at least today there was a fresh inflow of mostly outside money to balan...
Key Takeaways: President Trump announced $8 billion in additional agricultural assistance through the Harvest Fuel Relief Program, as USDA projects farm fuel and oil expenses will increase 28.8 percent in 2026. The package follows $12 billion in earlier relief, while government farm payments w...
Key Takeaways: A student group from the University of Chicago is protesting to bring back onion futures trading. Trading in onion futures was banned in 1958 following a spectacular bout of market manipulation that resulted in a corner of the physical market. The ban on onion futures led t...
Beef packer margins deteriorated to $141/head last week, down $55 from the prior week as fed cattle prices strengthened while the Choice cutout remained nearly unchanged. The cutout held near $373/cwt while fed cattle prices climbed $4/cwt to $224/cwt, narrowing processor profits. Despite the d...
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.