The September Grain Stocks report did not fail to excite, coming in with surprisingly bullish numbers that sent soybeans as much as 41 cents higher. Wheat traded to 39-cent gains at the day’s peak while December corn futures posted 18-cent gains at the day’s high amid a sharp reduction in stocks. Short covering was a dominant theme of the day and funds extended their existing length in grains/oilseeds. The headline numbers from the Grain Stocks report are that corn stocks fell to 1.995 Bbu, 10 percent below last year’s figure and 233 Mbu less than the September WASDE estimates. USDA revised 2019 corn production 2.67 Mbu higher to 13.691 Bbu. The data imply a June-August Feed and Residual use of 928 Mbu, which would...
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.