Because China is such a dominant soybean importer, the crushers there think they have the upper hand in forcing sellers to renegotiate prices to a lower level, and they probably do. Many More Chinese Soy Purchase Defaults Predicted The general manager at one of China's largest soybean processing firms has told Reuters that Chinese buyers may soon default on an additional 1.2 MMT of soybean purchases from the U.S and/or South America. Mr. Shao Guorui of Shandong Sunrise Group said trading firms in Shandong province have refused to make payment for about 20 shiploads of soybeans that were delivered by the sellers to China before they received a letter of credit. Buyers are now unwilling to make payment because they will suffer losses of as...
What You Need to Know Today: U.S. weather is getting more attention this week as conditions vary greatly across the western, central, and eastern corn belts, with the different regions battling dryness and too much rain simultaneously. The ProFarmer Crop Tour began today in Indiana and Nebrask...
Key Takeaways: Argentina is on pace for a record corn crop and record exports in the current marketing year, with abundant supplies likely to keep the country highly competitive in global export markets. Argentina’s record exportable surplus is allowing it to offer highly competitive pri...
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.