Although grain and soy futures prices are very low, in some cases at or near multi-month or multi-year lows, the technical profile across the entire market still remains bearish. Funds are rebuilding their short wheat positions and establishing new short positions in corn. General Comments After yesterday's weakness, there was some expectation that grain and soy futures markets might perform a "Turnaround Tuesday" on Wednesday, and that is the way markets started out in the overnight session. The mini-rally in corn and wheat began to sputter, however, and prices of the grains gradually sank back into the red once more. The U.S. Dollar Index was higher again, although today's gain added only modestly to its recovery from its recent correct...
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.