General Comments This morning USDA reported an export sale of 120,000 MT of old crop soybeans to unknown destinations (probably China) and a sale of 120,000 MT of new crop 2013/14 soybeans specifically to China. The old crop sale may be related to the rumored business done earlier this week. The old crop supply situation for U.S. soybeans is such that every new export sale puts outsized pressure on whatever limited supply of soybeans that remains.Buying interest in nearby U.S. soybeans at a time when the Brazilian harvest should be ramping up can be blamed on the logistical nightmare and transport problems that are choking Brazilian soybean exports. Newly imposed government rules have the effect of reducing trucking capacity in the face...
What You Need to Know Today: Cattle futures extended their sharp selloff Friday as weakening cash cattle prices, deteriorating feedlot profitability, and reduced packer demand continued to weigh on the market. The inability of futures to sustain a rally following last week's bullish Cattle on...
As predicted, the Federal Reserve held rates steady at the last meeting before the midterm elections, likely in part because of the election (see WPI 19 October and 22 September). The decision comes at the tail end of a midterm election cycle that has been marked by the two parties campaigning...
Key Takeaways: WPI’s new EU rapeseed crushing margin models point to weaker processing returns over the next four months due to higher rapeseed procurement costs and weaker product values. Statistical forecasts call for German crushing margins to decline from €181/MT to €...
Illuminating the value of technical research
On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.