Commodity markets received an early bullish surprise after the Saudi-led OPEC+ announced it would cut crude oil output 1.2 million barrels/day starting in May and lasting through the end of 2023. Analysts are speculating the move is intended to push prices back to the $100/barrel mark. The news was supportive for energy complex futures and, in turn, ethanol and soyoil due to their connections to energy markets. CBOT traders also continued to react to the implications of USDA’s Friday reports with soybeans pushing higher still on thoughts that ending stocks could fall another 20 Mbu from the already tight 210 Mbu forecast. Wheat futures pushed higher in early trade but gave up most or all those gains amid profit taking and some physica...
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.