GOOD MORNING, Prices are mixed this morning as corn remain mired in bear market territory as values are attached to struggling ethanol. Bear markets ignore friendly input, so even the recent Chinese corn purchases from the US is not enough to counter what could be a growing carry-out. The decline in gasoline demand due to Covid-19 amidst work and travel restrictions is the over-riding bearish component to this market. According to the EIA, US motor gasoline demand was at roughly 6.7 million barrels for the week ending March 27, down 25% from the prev. week. US ethanol use may see an estimated total decline of 741 mln gallons in the March through May time period, which would result in a reduction of 256 mil bu...
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.