The CBOT largely followed the trends set yesterday by the Grain Stocks and Small Grains Summary reports. Wheat rallied sharply and posted near-30-cent gains while soybeans continued their selloff and tested major technical support levels. Corn was once again caught somewhere in between but supported by stronger U.S. exports and news that China will suspend some fertilizer exports. Funds were net sellers in the soy complex while continuing to buy wheat on a tightening global supply outlook. Aside from the larger trends each market is setting, smaller trends are also appearing. Bear soybean/corn and bear soybean/wheat spreads are becoming increasingly popular and buy wheat/sell corn spreads as well. Technical weakness in the soy comple...
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.