While grain and soy futures markets could not mount a successful rally yesterday as most outside markets did, prices for grains and the soy complex (except for soyoil) did manage to move higher today with much of the impetus coming from noncommercial short covering. General Comments The U.S. Energy Information Administration(EIA) reported that U.S. stocks of crude oil grew by 10.4 million barrels last week. That increase is about four times larger than analysts expected, pushing crude oil futures prices into quick retreat. However, the oil market is up about $7 from its 2016 low with most of the catalyst provided by hope for some sort of multinational agreement constraining oil production. Also helpful to the rally, though, has been trad...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Key Takeaways: Consumer spending is a key driver of the U.S. economy, and the latest retail sales data indicate that spending remains robust despite inflation. In September, total retail and food service sales rose more than 6 percent year-over-year, with food service spending up 7 percent and...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
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.