General Comments Helped along by yesterday's bearish WASDE, trader sentiment has rapidly shifted from concern about late planting to the assumption that "rain makes grain," and anticipation of rapidly building U.S. stocks of corn and soybeans. Although it is less talked about, the assumption that the world will not need increased U.S. production in 2013/14 could be added to the list. What a difference a year makes!The bearish case was helped further by a Goldman Sachs research memo in which, to paraphrase, it foresees corn prices falling to at least $4.75 and possibly to $4.25. Soybean prices are headed to $11.00 with $10.00 a distinct possibility. The corn price prediction is at least $0.75 lower than Goldman's May advisory, and the soy...
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.