Corn Market Gains Strength Basis levels in the Argentine new corn market had been dropping slowly because of a lack of demand. Nevertheless, as FAS prices remained quite stable, replacement levels increased quickly from -40 CK to a -5 CK FOB equivalent. Farmers did not want to accept the dip in world prices and did not sell any volume for a number of days. Pressure remained in the market due to long positions of traders who had purchased FOB cargoes at low levels only to sell those cargoes below replacement. After a few weeks of this, demand for the new crop appeared once again.There was a tender in Korea for which 180,000 MT were sold from South America CIF Korean ports at $312-317/MT. These cargoes are certain to be shipped from Argen...
What You Need to Know Today: U.S. weather is getting more attention this week as conditions vary greatly across the western, central, and eastern corn belts, with the different regions battling dryness and too much rain simultaneously. The ProFarmer Crop Tour began today in Indiana and Nebrask...
Key Takeaways: Argentina is on pace for a record corn crop and record exports in the current marketing year, with abundant supplies likely to keep the country highly competitive in global export markets. Argentina’s record exportable surplus is allowing it to offer highly competitive pri...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.