GOOD MORNING, Prices started the night lower, but head into the close higher into today's important WASDE report, one that could determine trend over the next several weeks. Jan and Feb timeframes are typically negative for US markets as early harvest begins in Brazil, but this year La Nina pushes that timeframe back. Rains in South America pressured the market a bit, but this is all about positioning into the report. Funds stand heading into the report long an estimated 400K contracts of corn, 11K wheat, 175K beans, 100K soyoil, and 75K meal. Typically, when funds are all on one side of the market it spells trouble. The report and weather moving forward will determine whether the bull boat continues to float...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
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.