Soybeans Market Overview The market was slow last week with Chinese demand focused last Thursday on buying U.S. soybeans for July and August shipment, which traded at 155 and 160 CNF, respectively. All purchases, estimated by analysts to total 1.5-2MMT, were made basis July futures and procured from the U.S. Gulf (USG). It was interesting to see China buying from the U.S. again as last week’s trades were well above offers in the Brazilian market. USG beans typically trade at parity or a 10-cent discount to Brazil’s due to their lower oil content (approximately 1 percent on average). The lower oil content implies a lower yield for crushing plants. With soyoil the most highly-valued component of the soybean crush, it’s im...
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.