The bull market had a split decision today, with corn, soybeans and soyoil up but wheat taking its losses. USDA flash announcements of large old crop corn export sales (likely to China) and soybeans sales affirmed the rumor of the past couple of days and helped today’s confidence. Buying on the breaks tends to stifle them and competition between domestic and overseas buyers keeps the bidding competition going. Russia killed the wheat market by suggesting that no additional taxes/restrictions will be put on exports. It softened up the bulls for today, but it is Russia and so things could change. Funds have lightened up on their longs but there remains plenty of dumb money in the system and if equities ever lose their glitter, it...
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.