During the next month, South American farmers will have to start considering their planting intentions for the 2015/16 season. Ther market there, though, is currently being impacted by several other factors.Favorable crop yields in South America will partially offset weak prices for farmers there. The pictures below show the good condition of soybean and corn crops going into harvest:Farmers are not anxious to sell at current prices, but some selling of soybeans and corn is necessary in order to make payments. There will presumably be an attempt to delay acceptance of offers on soybeans as long as possible and instead sell corn first in order to generate the necessary cash. As well, farmers will strive to harvest and deliver directly to the...
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.