The durum market has done absolutely nothing over the past several months, while prices for nearly every other agricultural commodity were setting new all-time contract highs. Wheat's all-time highs were established back in 2007/08 when Mpls futures soared above $20 and durum traded as high as $25 a bushel. Wheat didn't approach those price levels this year, but corn and soybeans did establish new record high prices. Back in MY 2007/08 marketing year, wheat supplies were so tight at some points that there was a legitimate fear that wheat could not be bought at almost any price. Cheap Black Sea wheat held world wheat prices in check during the first half of this marketing year, but Mpls March wheat futures did hit $10.34. Durum historicall...
What You Need to Know Today: U.S. weather is getting more attention this week as conditions vary greatly across the western, central, and eastern corn belts, with the different regions battling dryness and too much rain simultaneously. The ProFarmer Crop Tour began today in Indiana and Nebrask...
Key Takeaways: Argentina is on pace for a record corn crop and record exports in the current marketing year, with abundant supplies likely to keep the country highly competitive in global export markets. Argentina’s record exportable surplus is allowing it to offer highly competitive pri...
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.