Livestock Hog Futures from May Onward Trend Upwards as Market Reopens Prior to the start of the Lunar New Year holiday, live hog futures on the Dalian Commodity Exchange (DCE) ended January down across the board. The March 2022 contract closed at RMB 13,425/MT ($2,110.68/MT), a decline of RMB 455/MT ($71.54/MT) from the previous week’s settlement price. Similarly, the May 2022 contract, the second most heavily traded by volume and turnover fell by RMB 515/MT ($80.97/MT) from the prior settlement price to end the Year of the Ox at RMB 14,420/MT ($2,267.18/MT), casting doubt on a Q2 recovery for live hog prices. In fact, with the March 2022 and May 2022 corn futures contracts closing out January at RMB 2,722/MT ($427.95/MT) and RMB 2,...
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.