Wheat Egyptian tenders have historically been a good way to measure the competitiveness of wheat from different global origins. Assuming that condition continues to hold true, then the competitiveness of Argentine wheat is poor because Egypt recently rejected Argentine offers of $275/MT for being too high. It seems increasingly evident that Argentina is out of the global wheat market for destinations other than Brazil.Presently, the free aside shipment (FAS) price in the local market is about $270/MT, which gives FOB parity of $360/MT. There was a trade this week at $348/MT for 15 December shipment upriver, but this was a long-position reseller and not the origination. Presently, there is virtually no Argentine farmer selling of w...
What You Need to Know Today: Chinese purchases of U.S. soybeans continued to accelerate, with USDA reporting another 558 KMT sold to China and 236 KMT to unknown destinations. Combined with sales announced Wednesday and Thursday, the latest purchases bring the three-day total to approximately...
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.