USDA issued another bearish blow to the corn and soybean markets with its November WASDE. Bob Kohlmeyer delves deeper into the WASDE number and implications (see today’s Common Thread), but USDA did announce a new record-high U.S. corn yield of 175.6 bushels/acre (BPA) as well as the largest ending stocks/use ratio in the past 10 years along with the second-largest soybean ending stocks/use ratio in the same period. The U.S. is hardly the only country swimming in excess grain, however, and USDA increased world wheat, corn, and soybean production while boosting world corn and soybean ending stocks by 1.4 and 1.9 percent, respectively. To say the least, it was a bearish report. Before today’s post-report excitement, the overnight...
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.