Soybeans Market Overview Chinese demand remains very slow as reductions in Dalian soymeal futures exceeded those of CME futures, leaving gross crushing margins in China at $15-17/MT (depending on the area and basis used). With crushing costs near $15/MT, there is almost no profit. The Chinese have been working with gross crush margins of $26-28/MT all year, and their recent declines are the reason more purchases were not made despite inquiries for August. Moreover, the market was waiting for China to decide whether to buy U.S. soybeans. After meeting with President Xi at the end of June in Japan, Trump tweeted that the U.S. would delay additional import tariffs on Chinese goods. The decision was intended to give both sides time to find a...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
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.