The CBOT continued its bullish panic buying overnight and wheat futures hit their expanded 75-cent daily price limit amid aggressive short covering. The move occurred before the Paris milling wheat market opened, and Paris futures gapped sharply higher but eventually settled with €0.50/MT gains as profit taking took hold of that market. During the day session, however, profit taking became the theme of corn and soybeans, while funds still appear to be chasing old crop wheat. Notably, old crop/new crop bull spreading was aggressive in corn, soybeans, and wheat today with December CBOT wheat hitting limit-down offers at the same time May CBOT wheat was bid limit-up. Funds are thought to have bought 25,000 contracts of wheat along...
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.