Pursuit of now-President Trump’s policy agenda seemed to promise that the rate of inflation, essentially stagnant since 2009, would very likely begin to rise, and funds began to look for new homes that might benefit from this.In the past several weeks, we have commented a number of times about the amount of new speculative “investment” money pouring into commodity futures markets, including those for grains and soybeans. Nearly all of it has come from managed money pools such as index funds, commodity funds and hedge funds. Most managed money funds took a licking from long positions in commodity markets in 2015, and losses continued until the second half of 2016 when energy markets began to revive and rally. Many funds heavily weighted in c...
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.