GOOD MORNING, The rising soy complex on Thursday was led by meal, which rebounded on technical consideration and news that Argentina's largest meal exporter, Vicentin, was in financial distress and having payment restructuring issues. This company is Argentina's number one exporter of soybean products and therefore, any loss in that location favors a gain in another, in this case the US. The rally in meal set in motion a sharp sell-off in oilshare, as oil bulls liquidated against rising meal prices. Traders seemed to be caught off guard, with estimated positions still showing the futures / options funds short 40K meal vs. a 60K long in soyoil. Bean rallies are typically off the back of meal shortages, w...
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
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.