GOOD MORNING, Prices saw down-side follow-through overnight following the sell-off yesterday. Is the panic buying over? We are approaching first notice day, and ideas are floating that prices reached their highs on short-covering and margin calls given how high the markets were working. There were also ideas that 2021 acreage is going to be much higher as farmers get into the fields, but we will know more about that in the June Acreage/stocks report. Technically, prices reached a peak with lower settlements, always good for a downward retracement. Spreads remain firm this morning, with May corn bouncing back to trade higher after trading from contract highs at $7.20 1/2 down to $6.76 1/4. Wi...
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.