General Comments Basically, CME grain and soy futures trade today was a tale of two markets. USDA's modest cuts in 2012 production prospects and a 2012/13 corn supply/demand balance that actually increased total supplies and end stocks disappointed the corn market, which promptly sold off under heavy fund liquidation. Moreover, some traders were caught long corn/short soybeans on a spread basis which, based on the USDA report, was exactly the wrong way to be, so they hastened to unwind the spreads.On the other hand, USDA's cuts in the soybean yield and production exceeded market expectations. Additionally, USDA raised exports and crush for 2011/12, thus lowering the carry in for 2012/13. USDA left ending 2012/13 soybean stocks unchanged,...
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.