General Comments As dire as the U.S. soybean and corn supply situation may prove to be, futures markets can trade on them only so long before turning to something else. Moreover, markets have had plenty of time to price in those expectations of tight supplies. Thus, the market's attention is increasingly focused on Southern Hemisphere crops -- the "second" harvest -- and on Brazil and Argentina in particular.USDA has based its U.S. and world soybean analyses on the assumption that Brazil and Argentina will produce huge soybean crops. Specifically, USDA predicts that Brazil's soybean crop will reach 81 MMT and that Argentina will produce 55 MMT. Both would be records. Certainly, soybean prices have provided South American farmers with ple...
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.