Origination has become very expensive for soybean exporters in Argentina. The FAS market keeps climbing as farmers are not eager to sell aggressively. In the local market, soybeans are worth $290/MT versus less than $270/MT a month ago. FOB replacement remains around +70 SN even after the CBOT rally of recent days. Soybeans Brazil is starting to move on some positions, while the U.S. is participating on those of August and September. Meanwhile, crush margins in China are still not very good. Nevertheless, the Chinese are beginning to assume that they still need to crush despite the lack of positive net margin. The current basis are clearly not good for them, but it is also evident that they need to continue operating their plants.While Ju...
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...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
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.