Wheat had an interesting trading day today. Chicago led the rally because that’s where the funds are short about 500 million bushels of futures. Short covering pushed prices above several moving averages, and that brought additional short covering. General Comments Markets were mixed overnight with soybeans turning firmer after the Brazilian impeachment vote results were known. Crude oil was down hard on news that no agreement was reached to curb oil production at the Doha meeting on Sunday.All of that changed when markets opened this morning with wheat, corn and soybeans notching good early gains. Wheat eventually took charge on fund buying. Last Friday’s Commitment of Traders report showed the funds had continued to add to those short p...
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.