There has been much said about the recent flight of managed money from grain and soy futures markets in search of greener pastures, and the record setting U.S. stock market certainly has provided one. Long liquidation by non-commercials has kept the soybean futures market under pressure during the last three to four weeks even though there is nothing to suggest that there has been any real relief for the extraordinarily tight supply and demand balance for physical soybeans during the last six months of the 2012/13 soybean crop year ending 31 August. Non-commercial liquidation of long soybean futures positions undoubtedly has dampened some of the market impact of the tight supply situation, much to the frustration of some market fundamenta...
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.