The main driver of both soybean import demand and soymeal consumption since 2000/01 has been China. Because of the recent trade dispute with the U.S. and other factors, however, that country is unlikely to be such a dominant factor in the global soy sector. As a result, other key markets must be found to compensate for that loss in the years ahead. China accounted for 80.5 percent of the growth in global soybean imports and 48.8 percent of that in soymeal consumption between 2000/01 and 2017/18. Had it not been for this, the world soy market would be far different from what it is today. If the global demand growth for soybeans continues at the pace it has enjoyed since 2000/01, an additional 80 MMT will need to be produced in a decade. How...
What You Need to Know Today: Traders are increasingly focused on next Wednesday’s August WASDE report, with corn and soybean yield estimates expected to drive the next major move in grain markets. Recent crop condition declines and late-July heat have increased uncertainty around USDA&rs...
Yesterday the Senate Agriculture Committee held its markup of the “skinny” farm bill, and it was derailed over Democratic opposition to plans for imposing food stamp costs on state governments. The Democrats pushed back on a provision that required states to pick up a larger share o...
Key Takeaways: WPI’s 2025/26 corn export models continue to reflect strong international demand and put the total marketing year volume slightly above USDA’s estimates. Strong old crop corn exports are offset by weaker feed and residual use, leaving ending stocks slightly ele...
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.