Rains delayed soybean and corn harvest progress in South America last week, creating the possibility of significant market impacts later. The rally in CBOT corn has limited upward movement in Argentine basis, and wheat exporters are taking action. Soybeans Argentina’s soybean harvest started slowly last week due to the rains. Only 3 percent of the national area was covered, 5.6 percent below the last campaign. Production estimates are still rising, and exporters are expecting 57 MMT. Initial yields are above 4.2 MT/hectare, which strongly indicates total production will exceed that expectation. Rains are expected for the next 10 days in all areas of Buenos Aires, Santa Fe, Cordoba, Rosario and Entre Rios, further slowing the harvest.The F...
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.