SPREADS September KC/Chicago spreads moved to new contract lows yesterday. KC wheat/corn spreads moved back to levels conducive to putting HRW back into feed. October crush firms to 1.07c/bu while oilshare firms to new highs at 33 percent. Dec/March corn trades from 10c to 10 1/4c while Dec 19/20 trades from a 3c to 5 1/2c inverse. Sep/Dec meal trades from $5.10 to $5.30. Dec wheat/corn trades from 84 3/4c to 80c. PALM OIL Closed up 41 ringgits for October. NEWS Stocks are lower this morning off 80 pts with crude oil firmer at $53.75/barrel and the US dollar weaker at 97.49. US June PPI final demand was left unchanged at +0.1 percent. CALLS Calls are higher across the board...
Beef packer margins improved to -$130/head last week, up $44 from the prior week as sharply lower fed cattle prices more than offset continued seasonal weakness in the Choice cutout. The cutout declined to $373/cwt while fed cattle prices fell to $238/cwt, allowing packer spreads to recover for...
What You Need to Know Today: The conflict between the U.S. and Iran continues to escalate with the two sides exchanging attacks over the weekend. President Trump said Iran “will pay” for recent attacks that claimed the lives of U.S. troops stationed in Jordan. There are some signs...
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.