The U.S. soybean market has had a bearish fundamental outlook for well over a year. Record U.S. and Brazilian crops in 2017 pushed world supplies to record levels despite the consistent growing demand from China. Most market analysts expected soybean futures prices would drop to below $9.00/bushel, and the most bearish forecasts had them at sub-$8.00/bushel. The world’s fundamental traders have fought the short side of the market, while the big speculative funds have traded the long side of both soybean and soymeal futures. The funds have been the winners despite the outwardly bearish fundamentals. The last straw for the bearish fundamentals was the severe drought across Argentina that reduced soybean production there from early esti...
What You Need to Know Today: USDA reports are delayed until Tuesday due to the federal holiday on Monday. Over the weekend, President Trump announced a ceasefire between Russia and Ukraine. Russia warmly welcomed and confirmed this ceasefire by conducting more strikes against Ukraine. Specific...
On Saturday, 10 October, at a campaign rally in Clarksville, Tennessee, President Trump said that the U.S. and Mexico would come to terms on a new trade deal, and he said Canada does not need to be part of the deal. Trump called the coming agreement with Mexico “great” but gave no d...
Key Takeaways: The United States has steadily lost global wheat export market share since the 1970s, falling from the world's leading exporter to a projected fifth place in 2026/27. The rapid expansion of Black Sea wheat exports, driven by improved productivity and export infrastructure, has r...
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.