The plain fact is that we all missed the pent-up corn demand and end user stock building, inspired by the low harvest time prices that seemed very attractive compared to the much higher prices of the two previous years.The subject of U.S. soybean supplies and demand has commanded more attention during the last three crop years than any other fundamental supply and demand issues for U.S. crops, or for crops elsewhere in the world for that matter. The U.S. produced 3.09 billion bushels of soybeans in 2011, but strong demand from domestic and overseas crushers set a new record that drew down U.S. ending 2011/12 stocks to 169 million bushels, or 5.3 percent of total use. A severe summer drought cut into U.S. soybean production in 2012. However,...
Key Takeaways: Milk alone has not covered the full economic cost in any year since 2021: milk revenue fell short by $4.50, $2.15, $6.50, $1.27 and $2.34 per hundredweight in 2021 through 2025. Calf and cattle prices decided whether dairies cleared cost: cattle and other income lifted total rev...
Key Takeaways: Dry bulk markets are mixed with Capesize rates seeing solid gains while Panamax values slipped on a growing tonnage list. Supramax and Handysize vessels were stronger, though all sectors remain vulnerable to the seasonal dip in rates through Q4 and into Q1. Falling water l...
What You Need to Know Today: The Federal Reserve held interest rates steady at 3.75 to 4.0 percent Wednesday, with two officials dissenting in favor of a 25-basis-point increase. The Fed upgraded its assessment of economic growth from "solid" to "strong" but adopted a more patient approa...
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.