Today's rally in soybeans and corn came as a result of the confluence of several factors. There was the Chinese market recovery, more heavy rain in the eastern Midwest and expectations for a bullish July WASDE tomorrow (Friday). General Comments Every market in the world seemed to be higher today in what has been described as a "relief rally." It started overnight in Asia. After being caught in a downdraft for days, the Chinese stock market recovered with the biggest one-day jump in six years. Whether this was the result, finally, of the Chinese government's efforts to pump money into the market or simply due to the market's oversold condition probably does not matter. It was higher, and that is what was important at least for today. Euro...
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.