Today's markets were all about wheat, and the corn market was towed higher by its mega-rally. However, the strength of the grains did not transfer very well to the soybean market. General Comments Today's markets were all about wheat. Those prices were up a few pennies during overnight trade, but a surge of buy orders after they climbed above last week's highs caused Chicago July wheat to rally further above its 50-day moving average of $5.02. That brought in a large volume of additional buy stops, causing prices to run up even higher. Much of the buying came from funds that were short near 100,000 contracts of Chicago wheat. We have commented periodically about the vulnerability of such a huge short position if prices were to rally, and...
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
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.