The Argentine government is now financially pressuring farmers in its ongoing attempt to force them to sell the soybeans they are holding as a hedge against inflation.Argentine farmers are stockpiling 12.9 MMT of soybeans as a hedge against a nearly 40 percent annual inflation rate rather than sell them into export where the government obtains a large share of its revenues. Now the government, through its control of Banco Nation that finances 40 percent of the agricultural sector, is refusing to fund inputs for spring planting by farmers still holding beans. In addition to withholding credit, the government has threatened to fine farmers for retaining soybeans or to confiscate and sell them. In a few cases, it is believed government employe...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
What You Need to Know Today: Wholesale inflation was flat in July, with the Producer Price Index (PPI) unchanged versus expectations for a 0.2 percent increase. Core PPI rose 0.2 percent, also below expectations. The softer inflation data has reduced the odds of a September interest rate incre...
Illuminating the value of technical research
On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.