Lower volume and minimal price changes were featured during the overnight session, which is using the word feature very loosely. Winter wheat futures were up less than 2 cents, corn was about unchanged, and soybeans were down a penny. CME’s final count of corn open interest (O/I) from Wednesday showed a gain of nearly 9,000 contracts, bringing the increase for the first three days of the week to about 46,000 contracts. Total corn O/I now exceeds 1.7 million contracts, the highest volume in several years. Funds are no doubt on at least part of the short side. The question is if funds are not short covering, who is buying corn futures? The sheer cheapness of corn futures prices may have enticed some buying from index funds, but that is...
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.