Surprises are usually left for the military but today USDA pulled off the unthinkable, shocking the market to the bullish side. The August WASDE report reflected the global crop situation the way it should, but not the way the trade expected. The table below shows just some of the ways the market was caught flat-footed.
The WASDE made significant yield cuts (20+ percent) in the western half of the production area where heat and dryness has been relentless, and recognized increases (20+ percent) in the eastern part but overall, not enough to prevent significant declines. The market had been loitering within narrow ranges for several days looking for direction, and it received a full lesson plan today. Managed funds that had re...
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...