China's slowing economy and higer prices together with other factors are leading to slower consumer demand for pork and a decline in hog production. While this is likely to lead to greater import demand into 2016, it will be tempered by the devaluation of the yuan. China: Lower Yuan, Less Hogs China is facing two key pressures this year: a declining economy that has led to the yuan's devaluation and high hog/pork prices. Hog prices there grew from about $0.85/pound in mid-April to $1.28/pound in mid-August. The slowing of the economy and rising prices have affected consumer demand. There has been a switch from pork to seafood consumption as well as a number of foot-and-mouth disease (FMD) outbreaks that have led to further culling. Chines...
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.