While it has become common practice for exporters to fill all of their storage capacity with corn during December and January in preparation for March shipment, this year they made their purchases earlier (November/December). Now the ports are overcrowded with corn, and many are in the market trying to buy demand. Corn During the last few years, it has become common practice for exporters to fill all of their storage capacity with corn during December and January in preparation for March shipment (when the government typically releases new crop licenses). The exporters took advantage of the lack of export licenses at the end of the year as well as the limited number of domestic buyers and were able to buy corn cheaply, which they can then...
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...
We have described the long-term investment climate in crop and livestock production, using data primarily from the Bureau of Economic Analysis (BEA). The data provided background on the current investment climate and outlook for agricultural capital formation. Our conclusion was that investment...
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.