Soybeans Market Overview Chinese soybean demand remains slow, causing Brazilian basis to drop last week. Several exporters with long positions for nearby shipments forced basis lower, but there was no demand. Offers on CNF basis were at 285-290F early last week and finished at 275F with no bids. Trading houses believe China still has room to purchase December positions and is very open for January. Nevertheless, the Chinese won’t buy at this time because domestic crush margins are at zero based on CNF prices. Therefore, they will wait until that basis falls further to ensure a profit. Brazil The CNF market remains inverted for November/December, January, February, and March. This inverse used to extend until April positions, but t...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Key Takeaways: Dry bulk markets remain mixed with Capesize vessels seeing continued pressure from weaker demand while fixtures and rate strength gradually increases towards the smaller vessel classes. Tanker markets are pulling back from their recent highs as tonnage moves out of the Mid...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.