Brazil has the means to undercut current USG soybean prices. However, if the present selling opportunities are missed, South American merchandisers may need to seek advantage in the February period, which is the time of the first Brazilian new crop. Soybeans Argentine soybeans are temporarily uncompetitive in the world market because of domestic demand that has driven prices up to the equivalent of 80 SX FOB. This is not an attractive price when compared with the U.S. Pacific Northwest (PNW), which traded last week at 135 SX CNF for September/October. Discounting the freight cost of a full cargo to China ($0.86/bushel freight charge), buyers should pay around 49 SX for an Argentine shipment of beans in September.There appears to be somewh...
Grains posted strong gains today, putting the bulls firmly in the driver’s seat. There was no shortage of fuel for the move, with three W’s driving the rally: weather, war and worry. Weather: Cooler temperatures are temporarily easing stress across the Northern Plains and Midwest, b...
Key Takeaways: Global and U.S. cotton demand has struggled since the post-COVID-19 pandemic surge, which has left cotton prices drifting lower in the U.S. The war in Iran and the closure of the Strait of Hormuz, along with their impact on global energy markets, could boost cotton demand...
Key Takeaways: Persistent labor shortages are increasing operational challenges and costs across U.S. agriculture, particularly in labor-intensive sectors such as specialty crops, dairy, and meat processing. Immigrant workers, including H-2A employees, remain essential to the agricultural work...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.