Grain markets were higher amid a lack of farmer selling and forecasts of obnoxiously heavy Midwest rains. Corn and wheat were higher while soybeans found some pressure from continued trade war worries. Cattle futures found selling pressure early in the day but more prominent buying interest in the afternoon. The hog market continues to be driven by highly unusual spread trades that are keeping December futures at a sharp discount to October and February contracts. The USDA’s Export Sales report was bullish corn, bearish wheat, and somewhere in between for soybeans. YTD corn exports are up 50 percent from last year while wheat exports lag last year’s pace by 31 percent. YTD soybean shipments are down 23 percent, but this w...
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.
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...