GOOD MORNING, Prices are steady grains and lower soy. Spread trade continues to dominate in terms of price action. Traders continue to unwind previous buy bean/sell corn and buy soyoil/sell meal trade. The trade is very technical at this point, as December contracts liquidate and November contracts head into noon expiration, bearing down on the $9.00 benchmark. Technical traders continue to watch prices break and struggle to get back over moving average in corn and beans. Yesterday's quick break into the close was due to a headline that said US/China negotiations hit a snag on the exact amount of US ag purchases that China needs to procure. China is said to be resisting calls for curb to tec...
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...
What You Need to Know Today: Wholesale inflation was flat in July, with the Producer Price Index (PPI) unchanged versus expectations for a 0.2 percent increase. Core PPI rose 0.2 percent, also below expectations. The softer inflation data has reduced the odds of a September interest rate incre...
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.