The CBOT rallied sharply Tuesday with news that the Biden Administration will allow E15 ethanol use, news which buoyed corn futures. The Biden Administration broke with the Democrats’ typical ambivalence or distain towards ethanol and announced it will allow higher ethanol blend rates into gasoline to help fight rising fuel costs. The directive will permit E15 (15 percent blended ethanol) sales across the U.S. in time for the seasonal summer driving increase. Funds remained net buyers for the day with brokers estimating managed money traders added 6,000 contracts to their wheat positions and bought 10,000 contracts of corn. Funds were more cautious in soybeans and yesterday’s open interest data suggests short positioning...
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.