Long’s rush to the exit in CBOT futures continued Friday with the USDA’s Ag Outlook Forum (AOF) balance sheet projections weighing heavily on markets. March corn futures posted a new contract low in the first five minutes of the overnight trade on Friday and continued to post new lows throughout the day. Wheat followed suite and scored new contract lows with weakness growing in the Paris and three American futures markets. Soybeans managed to climb higher for the day, though the gains were a reaction to oversold conditions and will likely amount to no more than a dead cat bounce. Bearish outlooks and continued weakness were the themes for this week’s trade and the commodity market music doesn’t appear ready to change...
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.