World Perspectives
feed-grains soy-oilseeds wheat

Mercosur Regional Analysis

Soybeans The world soybean markets are still dead, including Brazil’s. Chinse demand is covered for August and most of September, leaving potential demand for October-January as the only buying possibility. Sellers, however, are not comfortable offering those positions. Trading houses are having a difficult time presently because few traders want to be long or short, especially on the Brazilian crop. Despite the possibly huge demand from China, buyers are not willing to pay replacement prices. Moreover, since Chinese crush margins are poor, they are even more reluctant to buy as they would be paying high basis with no profit. Consequently, any near-term demand is likely to be for spot positions, but the market is still well covered...

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feed-grains soy-oilseeds wheat

Summary of Futures

May 26 Corn closed at $4.4575/bushel, down $0.0275 from yesterday's close.  May 26 Wheat closed at $5.7725/bushel, down $0.1425 from yesterday's close.  May 26 Soybeans closed at $11.64/bushel, down $0.0675 from yesterday's close.  May 26 Soymeal closed at $312.9/short ton, down...

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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.

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