The CBOT seemed to start looking ahead to Friday’s December WASDE from the USDA at mid-week, which created a temporary, at least, pause in the selling spree. After a near-constant selloff over the past three weeks, wheat futures bounced unconvincingly higher on short-covering and profit taking. WPI does not expect this rally to last or alter the current trending downward outlook and we view today’s move higher as another “dead cat bounce”. Corn futures posted a similar day on the charts with short covering leading to a higher close for the day. Corn rallied from fresh lows earlier in the day, which made Wednesday’s trade slightly more convincing as a signal for a market turnaround. Soymeal futures screamed high...
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.