World Perspectives
livestock

Cattle on Feed: Placements Drop 7 Percent

USDA released its monthly Cattle on Feed report today; the inventory of cattle and calves on feed on feedlots with 1,000 head capacity or more on 1 March was 11.6 million, or 96 percent of March 2022. The numbers were mostly in line with expectations, so the report is mostly neutral for cattle prices. However, as WPI mentioned yesterday, there is a lot riding on retail beef demand. This is the sixth consecutive month where on-feed inventories are lower than year-ago levels, which will be a trend for most of the rest of 2023 – if not all of the year. The average daily marketings in February 2023 were 91,316 head based on 19 days; that compares to 92,350 in January on 20 days. Marketings as a percent of inventory was 14.9 percent;...

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Market Commentary: Soymeal, KCBT Wheat Lead Tuesday Rallies; Acreage and Stocks Reports Loom

The CBOT was mostly higher on Tuesday with traders increasingly preparing and positioning for the coming acreage and Grain Stocks reports. The soy complex was the upside leader for the day with turnaround in soymeal and soybeans gaining steam and attracting more technical buying interest. There...

Unhelpful Timing; Tai Strengths and Weaknesses; IPEF’s Weakness

Unhelpful Timing The U.S. agriculture sector unleashed a pro-trade barrage on the Biden Administration this week and USDA bureaucrats wittingly or unwittingly contributed to the onslaught. U.S. agriculture is highly dependent on trade. It was first battered by Donald Trump’s trade war and...

livestock

Meat Trade Changes

The U.S. is a major meat producer and exporters, and global demand has been growing. At the same time, competition has been growing and U.S. market share has been declining, though less for poultry than for beef. Brazil is a low-cost producer and has been a preferred provider for China where mu...

feed-grains soy-oilseeds wheat

Market Commentary: Soymeal, KCBT Wheat Lead Tuesday Rallies; Acreage and Stocks Reports Loom

The CBOT was mostly higher on Tuesday with traders increasingly preparing and positioning for the coming acreage and Grain Stocks reports. The soy complex was the upside leader for the day with turnaround in soymeal and soybeans gaining steam and attracting more technical buying interest. There...

Unhelpful Timing; Tai Strengths and Weaknesses; IPEF’s Weakness

Unhelpful Timing The U.S. agriculture sector unleashed a pro-trade barrage on the Biden Administration this week and USDA bureaucrats wittingly or unwittingly contributed to the onslaught. U.S. agriculture is highly dependent on trade. It was first battered by Donald Trump’s trade war and...

livestock

Meat Trade Changes

The U.S. is a major meat producer and exporters, and global demand has been growing. At the same time, competition has been growing and U.S. market share has been declining, though less for poultry than for beef. Brazil is a low-cost producer and has been a preferred provider for China where mu...

feed-grains soy-oilseeds wheat

Summary of Futures

May 23 Corn closed at $6.4725/bushel, down $0.01 from yesterday's close.  May 23 Wheat closed at $6.9975/bushel, up $0.0175 from yesterday's close.  May 23 Soybeans closed at $14.6775/bushel, up $0.255 from yesterday's close.  May 23 Soymeal closed at $457.9/short ton, up $11.9 f...

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From WPI Consulting

Infrastructure investment due diligence

On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.

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