Reports and Open Trading Hours Now that USDA reports are being released during open trading hours, it is clear that there is a spike in both volatility and volume in the seconds before and after release. USDA/ERS economist Michael Adjemian, who has previously written on the market effects of the WASDE announcement, has now looked at the dynamic during open trading hours. There is a spike of around 50 percent during the five minutes before and ten minutes after release of the report, settling down to around 5 percent the rest of the day. This is in contrast to most trading days where the rate of volatility is around 1 percent. There is a dip in trading at the moment of release where apparently everyone is pausing to comprehend what the...
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.