World Perspectives
soy-oilseeds

Argentina Cedes on Soymeal

This morning USDA announced a 100 KMT soymeal sale to unknown and it highlights one of the few areas where U.S. market share in bulk commodities has been increasing, even if only slightly. U.S. soymeal exports have been rising (see graph below) and cumulative exports for the past 12 months are up 2.7 percent, year on year. This is somewhat surprising given Argentina’s historical use of the differential export tax, which incentivizes product exports like soymeal over soybean sales.

However, the reason for this growth has been flat to declining production of soybeans in Argentina. The U.S. and Brazil are growing more soybeans and exporting more meal as Argentina cedes market share. Argentina was expected to expand soybean production...

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Forecasting developments in production agriculture

On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.

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