The recent weakness in soyoil prices – and, indeed, the multi-year plunge from record highs in 2022 – has been driven by the dynamics of declining expectations for consumption of renewable diesel and biodiesel. This fact is likely well known by WPI readers, though the details of what exactly has been driving the decline may not be as readily identifiable. This article examines the major drivers behind the renewable diesel boom and its impact on soyoil prices, and how the recent deterioration of industry profits has negatively affected these markets. Based on market conditions and our analysis currently, WPI looks for soyoil prices to dip further in 2024/25, but a growing export program should help prevent a major market collapse. As a...
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.