General Comments Consumers can be more flexible with gasoline consumption than food consumption, so it does not make a lot of sense that European economic events are driving gasoline prices up and grain prices down. It seems to be more logical that adjustment of trade positions is more of a cause for today's selling activity.The worst situation of any fund manager is to present his client with a negative quarterly statement after the client knows that position was recently in the black. Furthermore, the large funds often trade in multiple commodities and their rebalancing can become increasingly active at the end of a quarter. While perhaps less obvious, the rebalancing of positions by funds is as real a fundamental factor as labor prote...
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.
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...