It isn't often the WPI defers to other sources, but the subject of trend line yields can be very confusing. We have pointed out on numerous occasions the importance of the 2012 corn yield to these markets. USDA and several others are using yield estimates as high as 164 bushels per acre in its preliminary 2012 corn production estimates. The U.S. corn yield has only been 160 bushels per acre or higher twice. The first time was in 2004 and the last time was in 2009. The 2010 yield was 152.8 bushels per acre and the 2011 yield was 147.2 bushels per acre. The difference between a 2012 corn yield of 164 bushels per acre and 155 bushels per acre could mean as much as $1.00 or more to prices. The term "trend line" is often used in yield discussi...
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.