The November WASDE's surprising increase in the estimated U.S. national average corn yield warrants a fresh look at the nation's supply/demand dynamics.As noted here at the time, the biggest surprise in the November WASDE was the increase in the estimated U.S. national average corn yield when the widely-held assumption was that there would be a slight reduction. Furthermore, the increase of 1.9 bushels/acre from October was not minor. At 175.3 bushels/acre, the new estimate tops the old record-high yield set in 2014/15 by an extraordinary 4.3 bushels/acre! In analyzing the 2016/17 U.S. corn crop, NASS’s yield estimates have so far fallen in a very unusual pattern. The first survey-based estimate in August was 175.1 bushels/acre, which was f...
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.