Soybeans Markets After dropping for months under pressure from the U.S.-China trade war, U.S. basis levels reached bottom last week. Buyers from Europe and elsewhere have been taking U.S. Gulf (USG) soybeans at very cheap levels. Oddly, USG FOB basis has gone negative, which means cash prices are at a discount to CBOT prices. Supposedly, the USG FOB price is derived from CBOT prices plus the costs of barge freight to the Gulf and elevation of the soybeans in the ports. This normally gives a basis premium of around 60 cents. However, the early harvest sales plus lack of Chinese demand have put pressure on soybeans and taken the cash market to a technical position, showing a big discount to CBOT levels. USG FOB soybeans traded for October...
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.