The delivery period for the May futures contracts is finished, and it provided an interesting look at how the super strong cash markets finally had an impact on the futures markets. It has been a very long time coming. In the interval, we've had everything from local meetings to congressional hearings on why the convergence process has failed to work in futures markets. We've had task forces, etc., mostly centered on the lack of convergence in wheat futures markets. But, we have neither the time nor, frankly, the interest to rehash the entire convergence issue. What is clear is that there was convergence in corn, soybean and soybean meal futures in the May contract. Here's a brief recap of what happened. The CME did declare force majeure...
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.