Wheat, the soy complex and now corn are all re-emphasizing the lesson to both speculative and commercial traders that excessive reliance upon automated indicators can result in substantial returns being left on the table. General Comments Corn, wheat and the soy complex all closed higher today. Both wheat and the soy complex closed strong enough to place most traders holding short positions on margin call. The March corn contract is pressing up against the upper end of its recent trading range and will likely punch through resistance at the 12 November level of $4.50 per bushel. This price action makes sense. World Perspectives noted back on 7 February that this seemed destined to occur if USDA's February report indicated U.S. corn ending...
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.