Sorghum Argentina’s sorghum planted area and production has steadily fallen since the 2011/12 campaign. The highest planted area was 1.27 Mha, which yielded a 4.4-MMT crop. Last year’s crop covered 0.52 Mha and produced 1.85 MMT. This year, it looks like the sorghum crop will be larger, with planted area estimated at 0.57 Mha. The driver behind the diminishing sorghum crop is that sorghum competes with corn for land in Argentina. Sorghum is usually priced at a discount to the corn market and there are only a few exporters that participate in the sorghum market, making marketing a challenge. Recent structural changes in the Argentine markets have benefited corn plantings, and both this year and next look very favorable fo...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
We have described the long-term investment climate in crop and livestock production, using data primarily from the Bureau of Economic Analysis (BEA). The data provided background on the current investment climate and outlook for agricultural capital formation. Our conclusion was that investment...
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.