Multiple CBOT markets/contracts formed a moderately bearish “hook reversal” on Tuesday. A hook reversal is a day when a contract trades to a new high and settles lower but does not break the prior day’s low (if it did, that would be a key reversal). Hook reversals are less reliable indicators than key reversals and indicate a change of market direction roughly 60 percent of the time. They do, however, indicate market momentum is shifting and/or that exhaustion is developing. Despite the presence of hook reversals in corn, soybeans, wheat, and soyoil, WPI is not ready to call a top in these markets. Today’s trade saw choppy/frothy pricing, but WPI sees this as a normal event for extended bull markets. Bull mark...
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.