The CBOT traded sharply higher with corn, soybeans, soyoil, and soymeal all posting fresh contract highs. Soybeans traded to gains of nearly 40 cents, buoyed by continued drought in Argentina and a massive round of fund buying. Corn is also benefitting from expectations of significant cuts to Argentine yields and the market is starting to ration demand. Funds were net buyers today and bought back all of what was sold yesterday. The 2020 CBOT rally continues with no end in sight currently. Yesterday’s CFTC report was bullish the soy complex as funds were not as long soybeans as previously thought. Funds’ futures-only soybean position was cut 2,400 contracts last week with commercials also selling a roughly equal amount. Co...
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
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.