There is no question that U.S. corn and soybean exports will be greater than anticipated even a month ago in USDA’s May WASDE, largely because of some significant changes in underlying fundamentals. Corn and soybean futures markets have been on quite a roll over the past month or two. Most of the rallies have been attributed to significant fund buying. That has certainly been the case with funds now reportedly long over 200,000 contracts of soybean futures, 81,000 contracts of soymeal and over 70,000 contracts of corn. There have also been some significant changes in the underlying fundamentals of corn and soybeans. Argentina’s soybean crop was badly damaged by excessive April rains. Not only was actual production lost, but it is becoming m...
What You Need to Know Today: Chinese purchases of U.S. soybeans continued to accelerate, with USDA reporting another 558 KMT sold to China and 236 KMT to unknown destinations. Combined with sales announced Wednesday and Thursday, the latest purchases bring the three-day total to approximately...
As fall begins, wild migratory birds are starting their seasonal migration. That has the industry and government officials worried about the potential spread, again, of highly pathogenic avian influenza (HPAI). Some members of Congress have called for the United States to be prepared for a pote...
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.