USDA will release its June WASDE and winter wheat production updates at 7:30 a.m. CT tomorrow morning. Few major changes are expected, but the biggest change will be that the markets will be open and trading when the reports are released. The open outcry session will open at 7:20 a.m. to accommodate the report. The computer servers at USDA should be humming as well, since they are involved in electronic trading. We sense a real reluctance by USDA to make any significant changes to the U.S. supply and demand numbers tomorrow. Weather has been far from perfect, but not bad enough to believe that they will lower yield estimates for corn and soybeans. The really important reports, the quarterly stocks and planted acreage estimates, are just t...
What You Need to Know Today: Cattle futures extended their sharp selloff Friday as weakening cash cattle prices, deteriorating feedlot profitability, and reduced packer demand continued to weigh on the market. The inability of futures to sustain a rally following last week's bullish Cattle on...
As predicted, the Federal Reserve held rates steady at the last meeting before the midterm elections, likely in part because of the election (see WPI 19 October and 22 September). The decision comes at the tail end of a midterm election cycle that has been marked by the two parties campaigning...
Key Takeaways: WPI’s new EU rapeseed crushing margin models point to weaker processing returns over the next four months due to higher rapeseed procurement costs and weaker product values. Statistical forecasts call for German crushing margins to decline from €181/MT to €...
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.