There is no doubt that we are in a full-fledged weather market just now, one that developed rapidly enough to catch noncommercial shorts. When July corn pushed through long-time resistance at $3.80, it seemed to trigger massive fund buying. General Comments Overnight trading of grain and soy futures was brisk. The volume of corn traded overnight was nearly three times as much as during Tuesday. Markets continued to respond to unfavorable weather forecasts, effectively building a larger weather premium into prices. Somewhat surprisingly, the changes in open interest after yesterday’s rally suggest that there was less short covering than thought.Heavy trade carried over into the day session as traders responded to forecasts of upcoming very...
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.