Traders and analysts were decidedly bearish soybeans heading into the WASDE, but USDA’s report was anything but bearish the U.S. market. USDA cut U.S. soybean yields and production and increased ending stocks by a smaller-than-expected amount, causing a 50-cent rally in soybean futures after the report. The WASDE was bullish wheat and neutral/bullish corn, despite record-large U.S. yields. Funds were massive buyers in the soy complex today and also extended their length in wheat and, to a lesser extent, corn as well. The big surprise from the November WASDE was in U.S. soybean yields, which USDA cut rather than increased, defying pre-report estimates. USDA shaved 0.3 BPA from the 2021 U.S. soybean yield (now forecast at 51.2 BP...
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
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.