Yesterday’s USDA WASDE report surprised the market to the upside and the bullish reaction carried over into the open today. Having a surprising August WASDE report is not unusual but having one lean bullish has been rare of late. The weather was sketchy in 2017 and the December corn contract had rallied 5.25 cents going into that year’s August report in anticipation of a sizeable USDA cut in output. Instead, USDA kept the numbers relatively stable, and the result was a 15.25 cent plunge in December corn. The situation repeated in 2019 when USDA opined that corn acreage, yield and consequently production were well above the market’s pre-report expectations. Corn went down the daily limit as a result. Then in 2020, a powerf...
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.