WASDE projections of record-large world production in 2016/17 still leading to an 8 MMT reduction in ending soybean supplies painted a tempting picture for erstwhile soybean bulls.Even as the spot soybean future price has approached $11, soybean futures longs have not backed away from what has become a major bull market run. If anything, the two-month bullish surge of the soymeal futures market has been even more impressive than that of the soybean market, but there are signs that nervous noncommercial meal longs have begun to back away.From a fundamental perspective, the catalysts supporting the bullish soybean market have been the May WASDE that lowered estimated world soybean production and higher estimated U.S. and world soybean demand...
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.