Corn To date, 17.5 percent of Argentina’s corn area has been harvested. Currently, combines are in the center of the country harvesting the early corn crop and yields continue well below recent years’ averages. However, total harvest estimates remain around 34-35 MMT. Local market prices continue to be very depressed and Argentina’s May corn futures contract fell more than $35/MT in April. In the physical market, April’s declines were more than $40/MT. There are several factors contributing to the weak markets. First, farmers are harvesting and want to sell, which is creating harvest pressure in local markets. Second, exporters no longer have obligations to comply with export permits, meaning there is now no...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
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.