The lack of a clear direction from China’s central government regarding the unwinding of domestic corn reserves and the huge buildup of cornstarch inventories continues to weigh on corn prices and the deep corn processing industry. Last week's average domestic corn price fell RMB 80/MT ($12.30/MT) to RMB 1,870/MT ($288.10/MT). Oilseeds Soymeal Inventories Continue to Rise A combination of increased soybean shipment arrivals from Brazil, higher-than-expected utilization rates and ongoing sluggish demand pushed up estimated soymeal inventories for the second week in a row. They totaled 800,000 MT last week, the second straight 90,000 MT gain (+12.67 percent) over the prior week and a 30,000 MT increase versus the same week in 2015. Among t...
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.