USDA’s aid package for farmers, whose income prospects have been impacted by the administration’s use of higher tariffs as trade policy, is reportedly now being reviewed by the Office of Management and Budget (OMB), and it should be ready for unveiling on 24 August. Unconfirmed reports say that it will include a payment of $1.65/bushel to soybean farmers to help offset lower prices that have resulted from China’s retaliatory tariff on U.S. soybeans. However, corn farmers reportedly would receive just $0.01/bushel, which hardly seems worth the effort. Corn prices may not have been directly hit by the tariff war, but there has been some rub-off, and DDGS, a corn by-product, have been targeted. We wonder, though, how the effe...
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.