The driving force for soybean demand and prices in the last couple of years has been continued strong soymeal demand, particularly in Asia. The soybean supply deficit will not get addressed until the 2013 crops are harvested in South America. In the interim soymeal continues to be solid, except for some weakness in demand in Middle Eastern countries like Syria, where political unrest and economic problems are undermining consumption.What has not gotten as much attention in the current supply/demand environment is soyoil. Despite an extremely large palm oil price discount to soyoil, demand for soyoil continues to be strong. USDA is forecasting global soyoil demand in 2012/13 to be 1.75 MMT (4.2 percent) greater than in 2011/12 and 2.924 MM...
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.