Improved performance in the Brazilian ports has helped reduce the inverse in soybean contracts that has declined to about half the level it was in December and January.To the surprise of many traders, logistics in Brazil have started off this season better than expected. This is good news for those exporters who have arranged to load at the beginning of the shipment period. The situation has also contributed to the recent interest in switching some origins from the United States to Brazil. Another reason for that interest is the logistical delays to the U.S. Gulf and the Pacific Northwest ports due to bad weather. It is interesting to note that the picture was the exact opposite last season with U.S. shipping additional soybeans in February...
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
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.