Rumors of state policy shifts are driving down China's domestic corn prices, which is affecting some processors' margins. However, the cornstarch and ethanol industries may continue to have a difficult summer as the decrease in prices may be temporary and another variable is tepid. Oilseeds Soymeal Inventories Fluctuate Upward As a result of a surge in South American soybean imports and ongoing stagnant demand from the downstream market, China's estimated soymeal inventories increased to 1.47 MMT, a gain of 120,000 MT, following a 130,000 MT decline the previous week. The total is 360,000 MT or 19.77 percent lower than the same week in 2014. The estimated inventories rose in all surveyed regions except Shandong Province where they fell 2...
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.