Whether the search for a suitable risk management tool for Black Sea wheat will ever exist is unclear, though the competition to create such an instrument is increasing. In the important world of grain and oilseed exports, wheat exports are by far the largest measured by volume. Global wheat exports exceed those of corn by more than 30 MMT, and that is if it is a good year for corn trade. The U.S. once the dominated the world’s wheat export market, routinely capturing more than 40 percent of the annual volume. Of course, that is no longer the case. In the last 20 years, other countries have become major wheat exporters. In the 2016/17 wheat marketing year, more than 85 percent of world wheat exports will be shipped from otuside the U.S...
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.