Commodity markets were expected to mimic the risk-off mentality of today’s financial markets and that was true until USDA’s June WASDE report was released. The financial markets fear a reprise of COVID. Chicago opened lower amid reduced corn use for ethanol and more soybean exports by Brazil versus the U.S. By contrast, wheat was thought to have lots of global weather concerns. All of that was turned on its head after the report. The forecast for much lower soybean ending stocks in 2020/21 was a surprise, and the wheat numbers were bearish. The market responded rationally. Nowhere did futures end the day contrary to the consensus report number and the expectations leading up to the report (see table below).
This was ju...
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...
