Ever since the late November OPEC meeting where the Saudis pledged specific efforts to stem the growth in light-tight U.S. oil production, the bears have been in full voice about the future of the oil market. However, there are several factors to consider from a medium- to long-term view.Brent crude oil fell below $55 per barrel today, the first drop that low since 2009. The financial and commodity worlds are fixated on oil prices. Ever since the late November Organization of Petroleum Exporting Countries (OPEC) meeting where the Saudis pledged to not cut production and drive oil prices lower in an effort to stem the growth in light-tight U.S. oil production, the bears have been in full voice about the future of the oil market. However, the...
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.