Soybeans The market was slow last week with the Brazilian market almost out of old crop supplies. There are only a few cargoes offered at very high prices, and the volume is obviously very small compared to what Chinese crushers need for spot shipment. Chinese stocks have been dropping as Brazilian exports have slowed and the Chinese crush rate remains steady. China still needs to cover 3-4 MMT of soybeans until the Brazilian harvest hits in February. Notably, most of the elevation capacity in February is already committed to both China and non-China destinations. Consequently, the market will remain tight in February, with buyers trying to rebuild stocks in many destinations. Today, there was news confirming that China...
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.