World Perspectives

Scrutiny on Foreign Owned Farmland

The issue of foreign owned farmland has been percolating since the Chinese entity Fufeng bought 370 acres in Nort Dakota, near the U.S. Airforce’s Grand Forks Air Base which is home to sensitive drone technology. The land was purchased to build a corn wet milling plant that will start construction in 2023. The plant will begin construction in 2023 and is projected to process about 25 million bushels per year. That part of the project was warmly received in North Dakota, but the proximity to the air base has raised other hackles – reportedly 25 locations were scouted during the company’s due diligence. According to Fufeng, North Dakota was chosen due to corn supply and energy supply  to operate the plant.   ...

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Summary of Futures

Sep 25 Corn closed at $4.0925/bushel, down $0.0225 from yesterday's close.  Sep 25 Wheat closed at $5.3825/bushel, down $0.025 from yesterday's close.  Nov 25 Soybeans closed at $10.27/bushel, up $0.0225 from yesterday's close.  Aug 25 Soymeal closed at $275.8/short ton, up $0.2...

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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.

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