As noted last week, WPI is starting a new weekly report on the IV “smile” of nearby corn, soybeans, SRW wheat, and live cattle futures. Our goal is to give you, near the start of the trading week, an idea of how the market believes futures prices will behave in the near future. If you like it this idea and the information below, let us know! Here are this week’s charts: Corn Much like last week, the options market appears to be bracing for higher corn prices. The IV on OTM calls approaches 35 percent of higher while OTM puts presently peak at 32 percent IV. Additionally, larger call OI exists for corn options, placing the put/call ratio at 0.75. Near-term fluctuations are likely, but the long-term trend for...
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.