The CBOT started the day sharply higher with support from outside markets, which rallied in celebration of the July inflation data. U.S. inflation slowed in July and was viewed as an encouraging sign that the Fed’s interest rate moves are working to control price increases. Despite early day CBOT strength, however, soybeans and soymeal fell back and posted losses as volatility remains high in those markets. Soyoil, on the other hand, posted a strong, bullish day with support from the energy sector. Wheat and corn settled higher, but the latter market pared its gains heading into the close as a bearish WASDE remains a concern for traders. Fresh fundamental news was light for the ag markets on Wednesday, which left futures to tra...
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.