Traders got a better handle on the U.S.-China trade deal over the weekend and that put a bid under the CBOT on Sunday night’s open. The markets traded higher through the overnight session with corn ending nearly 6 cents higher, soybeans up 9 cents, and wheat 6-9 cents higher. Quite an impressive move for the overnight session, especially compared to recent history! The day session saw markets open higher and rally from there. The grains/oilseeds complex finished nearly universally higher while livestock markets struggled. Supplementing the bullishness from a phase one U.S.-China trade deal is the news that Argentina will increase its export taxes, thereby making U.S. corn/soybeans more competitive on the world market. The expor...
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.