New Support Price and Strengthening Rupee Affect Corn Exports With the rupee strengthening by approximately 8.84 percent within a 30-day period (67.71 rupees/$1 on 4 September 2013 versus a value of 61.72 rupees/$1 on 4 October 2013), the current Minimum Support Price (MSP) of 13100 rupees($211)/MT makes corn exports from India unfeasible.Reports are that some states are also looking to offer a bonus of 500 rupees ($8)/MT to farmers selling to the government. This will bring the MSP to 13600 rupees ($219)/MT. However, this is in the land-locked state of Madhya Pradesh (Central India), and traders had expected to source the material for export from Andhra Pradesh and Karnataka. Based on an abundant harvest expectation and a depreciated...
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
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.