CBOT futures may presently be rallying, but there is no demand for Brazilian soybeans from Chinese buyers. Soybeans: Brazilian Prices No Longer Inverted The inverse that was evident in the global soybean market over the past several months seems to be in the process of changing. Such a change may not have shown up yet in CBOT futures contracts, but it is starting to take place in the cash physical market. Recent increases in the CBOT futures and reduced demand have placed Chinese crushers in a position where they have negative margins and more soybeans than necessary. They no longer had any interest in receiving soybeans early. This situation has placed a damper on the inverted markets, and some soybean traders have been forced to pay a p...
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.