The CBOT opened on the defensive heading into the WASDE with traders bracing for bearish numbers. The soy complex led the way lower with a 2 percent decrease in Malaysian palm oil helping pull soyoil lower in early trade. Corn and wheat followed the soy complex lower initially but found trading range/technical support and were mostly sideways heading into the October WASDE. The October WASDE was predominantly bearish soybeans with USDA projecting a record-large U.S. soybean crop and increasing U.S. 2021/22 ending stocks by more than expected. USDA added 0.9 BPA to this year’s soybean yield estimate, a surprisingly large change for an October WASDE, due largely to larger yields for Iowa, Minnesota, and Nebraska. These regions we...
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.