An interesting study released by AACREA this past week seems to conclude that it will be difficult for Argentine farmers to financially break even this season on corn produced more than 30 km away from ports and soybeans more than 117 km away. Uncertain Soybean Production The last cargo of Argentine soybeans may have been sold for 2014/15, trading at 85 SX for November shipment. This seems close to PNW pricing levels, considering those stocks are offered at 160 SX CFR and freight from Argentina is $0.77. Of course these levels are well below the FOB replacement in Argentina (+140 SX). Consequently, this is why that cargo might have been the final one of the 2014/15 season, which totaled approximately 11.5 MMT in exports and a carryo...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...
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.