USDA's May WASDE had a little something for everyone. The bears, especially those who have been liquidating long corn futures positions the last several days, must like USDA's 2012/13 corn outlook. They should also be relieved by the old crop 2011/12 corn numbers. The bulls should be happy with the U.S. soybean outlook for both old and new crops. Wheat bulls, if there are any, should be somewhat comforted by USDA's mildly supportive view of the 2012/13 wheat situation compared with bearish expectations.Following is a brief recap of some key features from today's WASDE:Some further details and comments: Corn One of the questions going into the report concerned how USDA would handle the apparently tightening old crop 2011/12 corn supplies...
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.