Drought is Still the Main Issue in Argentina, Uruguay and Paraguay As with last week, the main topic of discussion in South America is the ongoing drought. During the New Year weekend, neither Argentina nor Uruguay received any rain while Paraguay received a limited amount. Corn has already suffered enormously, and crop estimations are at a very low 20 MMT. This figure might not surprise some, since Argentina had 23 MMT of corn in the last campaign and 15 MMT from the one before that. However, the present campaign had a good increase of area and the estimated production was as much as 30 MMT at the end of November. Roughly 10 MMT have been eroded by December's drought.The main concern now is how it will affect the soybean crop. The crop...
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...
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...
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.