The CBOT started higher with corn and soybeans posting new contract highs. Goldman Sachs issued a bullish commodity outlook based on Chinese buying and a trend towards inflation, and that brought buying interest to the CBOT. As the day wore on, however, macro-market jitters and profit taking developed that pushed grain and oilseed futures lower. Funds booked some profits amid an export market that has been quiet so far this week. Overall, while the CBOT paused amid uncertainty this week, end users and cash markets remain supportive. Charts have neither broken down nor posted significant reversals, suggesting the outlook is either sideways or higher from current levels. With some weather risk present still for South America but large...
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.