Fears of macroeconomic weakness weighed on markets this past week. That and quad (Turkey, Ukraine, Russia, UN) discussions about opening Ukrainian exports caused November soybeans to fall nearly 55 cents in this week’s trading. The quad is missing the countries imposing sanctions Russia wants removed so the outcome of the negotiations is uncertain despite the happy talk. China is another weight on the global oilseeds market. Its economy is running slow. Q2 GDP growth was just 0.4 percent, the slowest growth since the Wuhan lockdown. Edible oil imports fell to their lowest since February 2015. CASDE lowered domestic edible oil production a half a percent to 28 MMT. Some analysts now believe 2022 GDP will expand by 3.3 percent, not 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
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.