Corn Argentina’s corn harvest advanced 9.2 percent last week, bringing the total harvest to 82 percent of the planted area. The harvest is 12 percent behind last year’s pace, but yields are above trendline, so large volumes are being originated daily. Farmer selling has increased considerable in the past few weeks and exporters are buying an average of 0.5 MMT each week. Exporters secured 0.8 MMT in the week ending 14 July, however, and 1 MMT for the week ending 21 July. There are no official numbers yet, but WPI expects another week of above-average origination for the last week of July. Farmers are harvesting large volumes and they need to keep selling (they sold 70 percent of the expected volume). Prices are st...
What You Need to Know Today: Risk-on money flow was present in the markets Thursday with headlines in Iran and the Black Sea driving the move. Russia attacked more of Ukraine’s processing and export facilities, including a Bunge facility near the Black Sea. One of the facilities hit was...
Key Takeaways: The significance of $100-per-barrel crude depends largely on how long prices remain elevated, as sustained high energy costs are more likely to influence longer-term agricultural decisions. Higher crude oil prices raise farm production costs most directly through diesel, while a...
Key Takeaways: Corn and soybean meal markets are tightening together for the first time in more than a year, driven by lower U.S. yield expectations and continued Chinese soybean demand. A strong El Niño is replacing last year’s La Niña, shifting crop risk across the Americ...
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.