The CBOT surged higher on Wednesday with corn and soybeans scoring new contract highs while wheat continued its technical rally – and that was all before the WASDE was released! Funds were active buyers in the morning on expectations of a bullish report and confirmation of more new crop soybean sales to China. The major ag markets continued their rallies after the WASDE was released and corn, soybeans, and wheat all posted technically bullish closes. The February WASDE was bearish corn, soybean, and wheat futures as USDA made fewer and smaller adjustments than the trade expected. USDA did not alter the U.S. 2021/22 corn balance sheet and only cut U.S. soybean ending stocks by 25 Mbu, after an equal increase in the crush forecas...
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.