General Comments Markets were trading higher across the board most of the day led by strong gains in the soy complex. Demand for soybeans and soy products continues unabated. This morning's NOPA crush number was big at 157 million bushels. There was also more positive news from China. The HSBC PMI index for November was 50.9 compared to 50.5 the previous month. The U.S. consumer price index declined for the first time in six months. Energy markets were slightly higher and the dollar was very weak. There is no progress in the U.S. fiscal cliff negotiations. U.S. financial markets started slightly higher but lost ground as the day wore on. Today was also the last trading day for the December contracts. Next Friday is the last trading day f...
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.