The Federal Reserve’s Federal Open Market Committee (FOMC) is meeting today and tomorrow. As noted after last month’s meeting (see Ag Perspectives, 3 November), the federal funds interest rate was not changed at that time, but post-meeting language suggested an increase would occur at this December meeting. Since the Fed cut the overnight rate to effectively zero in 2008, the first hike was in December 2015 with the second in December 2016. Thus, a December rate increase is becoming something of a tradition. In addition, there is plenty of supporting news for further tightening. Today’s release of the Produce Price Index (PPI) by the Bureau of Labor Statistics (BLS) showed wholesale inflation up 0.4 percent in November an...
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
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.