The National Oilseed Processors Association released a study today on the impact of COVID-19 on soybean crushers and farmers. The study shows that the value of soyoil dropped $1.5 billion from January through June, a 17.5 percent decline; meal dropped $220 million, which was a 1.4 percent decline. The estimated breakdown between oil use for biodiesel and food use through June from the January baseline showed a $781 million drop in value from lost domestic biodiesel demand and a $911 million dollar drop in food use demand, offset by a $192 million increase in biodiesel exports. The silver lining to the cloud, however, was biodiesel production continued and cleared the market for soyoil. Heavy vehicle traffic dropped less during COVID...
What You Need to Know Today: Corn and soybean futures were lower to open the week, with funds still in control and in a selling mood. The upcoming WASDE report on Tuesday is also likely to feature larger corn and soybean stocks, which helped put grain futures on the defensive. Wheat futures we...
Key Takeaways: Currency exchange rates influence agricultural export competitiveness and producer profitability, even when underlying commodity prices remain unchanged. A weaker domestic currency allows agricultural exporters to receive more local currency for dollar-denominated sales, potenti...
Although inflation has remained elevated since the post-COVID surge, it steadily moderated until the past year. More to the point, today’s inflation looks very different from 2022, when the Consumer Price Index (CPI) peaked at 9 percent. During and after the pandemic, the M2 money supply...
Soybeans Brazil Last week was once again very quiet, with very few trades. There is little activity in Brazil's old-crop market, with virtually no old-crop offers remaining for November. Brazil's export lineup for November and December is currently much smaller than last year's. After exporting...
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.