Export demand and a resurgence of fund buying sent CBOT corn, wheat, and soy complex futures sharply higher on Tuesday. The recent correction, whether driven by Chinese fund liquidation, margin calls, or profit taking, looks to have done its job of chasing out weak longs and stimulating commercial demand. Today’s trade saw funds emerge as strong buyers in corn, wheat, and soyoil, and to a lesser extent soybeans and soymeal. Notably, canola futures hit a 13-year high this afternoon, which further helped support the soy complex. China remains an aggressive buyer of U.S. commodities, with today’s daily “flash” export sales news featuring 1.36 MMT of corn sold to China in 2020/21. USDA also said 102,800 MT of corn...
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
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.