General Comments The screens were "green" overnight and that buying carried over into today's activity. Volume, however, was very light. Wheat led the markets higher on news that Brazil was dropping its 10 percent duty on imports from non-Mercosur countries and reportedly had bought 100,000 MT of U.S. hard red winter wheat. There also was talk of increased interest in milling wheat from China. China will be back to work from the Lunar New Year holiday, and that carries some expectations that the steep price decline since last Friday might bring some buying activity; however, USDA did announce the cancellation of 250,000 MT of soybean sales to "unknown" this morning.The dollar index was trading slight higher today while crude oil was down...
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.