Drivers of U.S. soybean, corn, wheat, soymeal and sorghum export opportunities are discussed with a view toward the long run.While large export volumes surprised the market early this year, they have occurred regularly since then and are factored into models. Understanding why U.S. exporters have been able to accomplish this feat is key to assessing how long the situation will last. Following is a discussion regarding U.S. export opportunities for soybeans, corn, wheat, soymeal and sorghum with a view toward the long run. Soybeans As has been previously discussed (see Ag Perspectives, 2 December 2016), the discount U.S. soybeans hold to Argentina’s and Brazil’s has been key to keeping the U.S. export door open. FOB NOLA prices have essent...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
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.