GOOD MORNING, The markets were in adjustment mode yesterday to the downside and fell sharply after Trump's announcements about more possible tariffs starting on Sep 1. China is promising to retaliate this morning. Prices are firmer but the bounce is relatively anemic in scope. The trade now figures that a deal won't be sealed between US/China before the 2020 elections, with tensions escalating. This is bad news for beans as PNW would land in China at around $22/mt discount to Brazil beans in a zero tariff environment. USDA estimated China’s bean imports this year at 85.0 mmt, versus 94.1 mmt a year ago, but with the spread of ASF some analysts are wondering if this number could drop to 80.0 mmt.&n...
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
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.