GOOD MORNING, Prices overnight continued strong and posted several more contract highs. Funds were adding to long positions in a big way yesterday, and when that happens the expectations are for much higher prices to emerge. Funds could be long an estimated and record 430K corn now, and are likely record long in beans as well. In the PM session, gains were added on technical merits alone, as May beans drive over $15.00 and Dec corn trades toward $5.50. May soyoil surges to over 61c, and upper targets are now moved back to 65c to 70c based on this strong action. Canola prices hit new contract highs as well. The most powerful market price actions are when fundamentals match technicals, and cash as well. Pu...
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.