U.S. soybean derivatives are essentially the only exchange-traded hedging vehicle available to the world soybean market. It works when circumstances allow it to, but there are some potentially severe out-of-position risks involved.We tend to think of the cultivation of soybeans as being relatively new compared to wheat, barley and other grains. However, they have been grown by Chinese farmers since before recorded history. It is actually quite possible that China's soybean cultivation began earlier than the prehistoric production of wheat-like grain as a crop in the Tigris River valley. Soybeans also have a longer history in the U.S. than is generally acknowledged. They were first introduced here in 1765, and a form of soy sauce produced in...
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.