The cattle and beef markets need clarity. The last Cattle on Feed report was fundamentally bearish, but prices have only gone higher since then. Packer margins are near record highs for this time of year, while cash cattle prices are near seasonal lows. Feedlot margins are theoretically in the red, but feeder calf values continue to rise (thanks, partly, to cheaper corn). Beef exports are relatively robust, but domestic demand remains flat overall. So, the present situation seems full of contradictions that Friday’s Cattle on Feed report may resolve. This analyst’s models suggest the 1 September total cattle on feed inventory will be up from last year with placements and marketings lower. To analyze the report’s likely fi...
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.