Good morning, Trading ranges continue to dominate the market as we draw closer to the 8 November WASDE report, in which traders expect to see another cut to corn and bean crops. The Crop Progress reports continue to point to an ongoing problematic pace, with corn falling short of market expectations for the pace of harvest. Funds added to their net short corn position yesterday, selling another 10K so far this week while liquidating some bean length. November bean futures are weaker as funds liquidate or roll contracts forward. Heading into first notice day, there are 1,144 Nov bean receipts registered. REPORTS Crop progress: Corn: 41% harvested vs. expectations of 43-45%, which is the slowest pace since 2009, lagging the most in...
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.