The stop-and-go release of corn export licenses, uncertainty about their distribution and falling CBOT corn futures contracts are combining to cause erratic behavior in Argentine corn basis. Soybeans The recent sharp drop in CBOT soybean futures contracts caused Argentine soybean premiums to increase by more than $0.20/bushel this week. The result is that South American soybeans are now struggling to compete against the pricing of U.S. origin. Spot origination in Argentina is near 55 SX and storage is around $0.05/ month. U.S. basis also seems likely to rebound if margins are to remain profitable enough to ship soybeans from the Pacific Northwest (PNW).Recent low soybean prices are creating financial difficulties for Uruguayan farmers, an...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.