World Perspectives
feed-grains soy-oilseeds livestock

Very Tight Soybean Supply/Demand Situation

Most of the attention yesterday by the trade press about USDA's July supply and demand report focused on corn. The 20-bushel reduction in USDA's yield estimate for the U.S. corn crop in 2012 to 146 BPA was unexpected by some because of USDA's normal reluctance to make such a large reduction so quickly. However, the cut was fully justified based on the weather thus far in the marketing year and the weather outlook. If anything, the reduction was not great enough as I believe the final yield will be 140 BPA or less. That is when it will really become a serious situation for corn.The tightening of the soybean supply demand situation got less attention yesterday, but in reality the soybean supply/demand balance sheet is even tighter than that...

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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.

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