Low asking prices for PNW soybeans are crowding out U.S. Gulf, Brazilian, and Argentinian exporters, with the latter needing to lower prices 20 cents to be competitive. Argentinian corn farmers are not marketing corn in the usual pattern, which may leave the country with record high ending stocks. Soybeans Last week was a very quiet with the Chinese celebrating the Golden week holiday, which ended on Friday with the celebration of the Moon. Due to the holiday, the Dalian futures market was closed in China, eliminating the chance to hedge soybeans purchases. The market closure also eliminated the ability to calculate soybean crush margins for Chinese processors. A few spot trades did occur last week, especially from the PNW, still the che...
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.