U.S. wheat ending supplies and another record world wheat crop in 2016 are all being affected by one particular issue.The USDA quarterly stocks report released 30 September added more weight to the wheat market because not nearly as much wheat was fed in the previous quarter as expected. This week’s USDA supply and demand numbers reduced the wheat feed/residual usage category by 70 million bushels (almost 2 MMT) as a result of the quarterly stocks number. In addition, USDA released its U.S. “wheat-by-class” supply and demand numbers. Those ending supply estimates are noted in the table below:The hard red winter (HRW) wheat class stands out as it clearly shows where the problem with big U.S. wheat supplies lies. Those stocks are now projecte...
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.