The most important question for these markets over the next six to 12 months will be how the massive job of rationing corn and soybean demand gets accomplished. And the rationing job that must occur is indeed massive. USDA reduced total U.S. demand for corn by 1.5 billion bushels (37 MMT) just from the July WASDE to the August WASDE report. USDA trimmed U.S. soybean demand by 363 million bushels (10 MMT) from the July WASDE. These huge cuts are required because of the awful corn and soybean crops. It is very probable the production numbers will decline again on 12 September, and that will mean another round of demand cuts to hold ending stocks at minimal levels.Everyone has his or her own opinion of how this rationing will take place -- i...
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.