The CBOT ended sharply lower on Tuesday amid a wicked combination of a rising U.S. dollar, favorable weekend rains in the Midwest, and a “risk off” day in outside markets, including crude oil. Funds were net sellers for the day and continue to exit long positions in grains and oilseeds as the U.S. dollar strengthens and there is little fresh bullish news. The old traders’ adage dictates that “bulls need to be fed every day” and there simply hasn’t been enough fresh bullish news to sustain a rally or staunch the selling. WPI believes the current selloff is overdone, but there is no sign of a reversal in corn, wheat, or soybeans. That means bears are in control until proven otherwise and we suggest waiting...
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
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.