The renminbi fell below 7 to the U.S. dollar this past Friday, and that raises the risk of at least two possible developments: 1) the exodus of money out of China; and 2) a declaration by Washington that Beijing is a currency manipulator. The situation adds one more variable to an already tense and precarious situation. A weaker yuan will make China more competitive against Trump’s tariffs, but both capitals know where this is all headed and are making moves to diversify their trading partnerships. China is importing agricultural commodities from other countries, including now Russia, and U.S. agriculture groups have received millions of dollars under the Agricultural Trade Promotion program to look for new markets. U.S. poultry exp...
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.