Soybeans Market Overview There was some movement at the beginning of last week when Chinese crushers decided to cover their open positions for March, April and May. The U.S. should not be competitive for these months, especially considering the significant delays in shipments at the U.S. Gulf due to weather problems and flooding along the Mississippi River. April traded at 125K and 126K CNF China, while there were also some trades for March/April straddled at similar prices. FOB basis rose quickly in Brazil since farmers were not selling soybeans and demand was ready to move. Nevertheless, farmer selling was quite reasonable by the end of last week, and demand calmed down after crush margins in China dropped when Dalian soyoil futures cr...
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.