WASDE projections of record-large world production in 2016/17 still leading to an 8 MMT reduction in ending soybean supplies painted a tempting picture for erstwhile soybean bulls.Even as the spot soybean future price has approached $11, soybean futures longs have not backed away from what has become a major bull market run. If anything, the two-month bullish surge of the soymeal futures market has been even more impressive than that of the soybean market, but there are signs that nervous noncommercial meal longs have begun to back away.From a fundamental perspective, the catalysts supporting the bullish soybean market have been the May WASDE that lowered estimated world soybean production and higher estimated U.S. and world soybean demand...
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.