The May WASDE trimmed red meat and poultry production estimates but raised them for 2018. Meanwhile, cattle futures are deescalating quickly amid broad market nervousness. WASDE Herd and flock expansion will continue into 2018, at least according to the May WASDE. The latest USDA figures peg total red meat and poultry production at 102.8 billion pounds in 2018, up from 100.3 billion this year. Every category from beef to broilers is expected to expand in the coming year. Notably, USDA decreased 2017 meat supply projections, based primarily on lighter cattle and hog slaughter weights.Cattle feeders’ ability to aggressively market cattle has reduced on-feed times and pressured slaughter weights. Consequently, USDA lowered 2017 beef producti...
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
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.