With drought, a late July heat wave, and escalation of the war Ukraine, risk premiums are being priced into the markets – and dairy was no exception. Yesterday the Class III Milk futures traded limit up on August, September, October, and November. The Class IV followed in the draft of the Class II jetstream. Today, those contracts traded on expanded limits given yesterday’s session, but the July Class III contract was up a penny and August and September gave back 9 and 49 cents respectively. Spot markets have also rallied, for block and barrel cheese, butter, whey, and powder. Last week, ice cream makers were pulling cream away from butter makers and heat in the central and western parts of the country has been impa...
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.