When it comes to holding stocks of surplus corn and wheat, no country comes close to China and the U.S. is a distant second. However, it is vastly different when it comes to holding soymeal. For this commodity, it is South America atypically holding nearly half the world’s surplus stocks. U.S. crushers tend to work for buyers, and in this case, compounders are providing a healthy crush margin to take ownership of soymeal. The U.S. carries only around 3 percent of global ending stocks and the EU keeping a similar percentage. It is easier to store soybeans and crush when needed than to store soymeal, which can become compacted and even more so when moisture is present. Part of the higher storage tendency is derived from the fact...
What You Need to Know Today: There has already been a strong run of flash soybean sales announcements in recent weeks, but more than 1.4 MMT reported this morning is an exceptionally large single-day total with major implications for the market. If the sales to China and unknown destinations w...
On Friday, at 6:57 AM, President Donald Trump announced, via a social media post, a 90-day window during which up to 300,000 metric tons of product for ground beef could be imported outside of tariff-rate quotas—a move aimed at bringing down costs for American consumers. This is the secon...
Key Takeaways: The Panama Canal’s draft restrictions and decreasing rainfall outlook are driving big moves in dry bulk markets this week. Panamax markets are sharply lower as the economics of moving freight across the Canal are deteriorating rapidly, leading to support in Supramax vessels...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.