As market pessimism mounts in China, last week's average domestic corn price fell. A survey with traders, though, indicated that cornstarch prices did rise slightly, but the uptick had little effect on processors' profit margins. Oilseeds Small Decline in Soymeal Inventories After nearly a month of steady increases, the estimated soymeal inventories of major crushers fell last week to 1.31 MMT from 1.39 MMT two weeks ago (-5.83 percent). That total is 1.08 MMT or 45.23 percent lower than the same period in 2014. Meanwhile, downstream demand has risen in recent weeks. In fact, our recent research suggests that market reports in June had underestimated end user demand for the second-half of that month. Among the surveyed regions, eastern C...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
Key Takeaways: Texas illustrates the assumptions underlying the 2025 FMMO reform; Idaho exposes their limitations. The Southwest order blend (roughly 27 percent Class I, 32 percent Class III and 31 percent Class IV) exposes Texas producers to every lever USDA adjusted, with a near-neutral proj...
From WPI Consulting
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.