The soybean analysis of last Friday (see Ag Perspectives, 2 December) discussed the role of emotion as a driver of the soy complex, but another factor is really the key component.The soybean analysis of last Friday (see Ag Perspectives, 2 December) discussed how emotion has been a driving factor of the soy complex as funds have been doing victory laps while fundamental traders have been getting beaten up rather badly, but demand is really the key component. This is especially true of export demand, which doesn’t appear to be abating. This morning USDA announced the sale of another 426,000 MT of soybeans to China, bringing the current total to 25.7 MMT compared with 18.9 MMT a year ago at the same time. It also brings this year’s sales and s...
Key Takeaways: Dry bulk markets remain mixed with Capesize vessels seeing continued pressure from weaker demand while fixtures and rate strength gradually increases towards the smaller vessel classes. Tanker markets are pulling back from their recent highs as tonnage moves out of the Mid...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
Key Takeaways: Texas illustrates the assumptions underlying the 2025 FMMO reform; Idaho exposes their limitations. The Southwest order blend (roughly 27 percent Class I, 32 percent Class III and 31 percent Class IV) exposes Texas producers to every lever USDA adjusted, with a near-neutral proj...
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.