Today’s market action gave further signs that the seasonal price rally is underway. In the last two days, the November soybean contract has gained 14.25 cents. December corn is up 7.75 cents, and Chicago December wheat is 9 cents higher. General Comments Unexpectedly heavy trading volume was the main feature of the overnight session. The trade count in both soybeans and corn was more than twice as large as the Monday night session. Despite the heavy volume, grain and soy prices did not move far away from Tuesday’s closes. Some of the overnight volume involved spreading, and part of the buying interest was no doubt in anticipation of a seasonal rally that often occurs as the U.S. corn and soybean harvests wind down. Grain and soy prices be...
What You Need to Know Today: A third U.S. border crossing (Columbus, New Mexico) has reopened to Mexican cattle imports following nearly two years of restrictions related to New World screwworm. The reopening could gradually improve feeder cattle availability, although more than 60 confi...
Yesterday, the USDA’s Agricultural Marketing Service (AMS) released a new report of negotiated cash purchases of cattle under the mandatory price report. The report included Colorado, New Mexico, Oklahoma, Texas, and Kansas. The goal of the report was to solve the confidentiality issues e...
Key Takeaways: U.S. soybean crushing began in 1911 and saw its most rapid expansion during the 1930s amid the broader agricultural and technology revolutions of the time. After peaking in the early 2000s, the soybean crushing industry went through a downturn as poor crush margins forced...
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.