U.S. sorghum producers have long complained of playing second fiddle to corn. Although sorghum has lower production costs, only about 2.5 percent as much of it is produced as that of corn. In terms of value per acre, it grosses 30 percent as much per acre as corn. Once sorghum became eligible for conversion into ethanol, it was thought that the crop had found its niche in terms of production area (southern Plains) as well as markets. Primary sales would go to select overseas customers with over-production going into ethanol. However, sorghum remains largely tied to the value of corn. The correlation of the value of corn to sorghum production is near perfect, whereas the R2 value of sorghum to sorghum production is slightly lower. The stock...
What You Need to Know Today: President Trump claimed the ceasefire between the U.S. and Iran was over, as both sides accused one another of violating the terms of the agreement. Commercial vessels are increasingly steering clear of the Strait of Hormuz as security risks escalate following Iran...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
Russian Grain Markets: 29 June-3 July 2026 The new marketing season has officially begun in Russia, although bearish sentiment has been concentrated in the southern regions closest to the Black Sea ports, where export demand has been weakest. Delays in grain deliveries to inland elevators have...
From WPI Consulting
Accountability and a comprehensive approach to export programming
WPI’s team helped construct a strategic approach to develop, implement, and track promotional activities in 8 key regions across the globe for an agricultural export association. With continued progress measurement and strategic advisory services from WPI, the association has seen its ROI from investments in promotional programming increase by 44 percent over the past 5 years. Not only does this type of holistic approach to organizational strategy provide measurable results to track and analyze, it fosters top-down and bottom-up organizational accountability.