Argentine soybeans started this week showing weaker basis. May shipment is offered at 20 SN with demand bidding at 15 SN, and June cargo is offered at +25 SN. Argentina traded 30 cents below Brazil last year and started at 15-20 cents lower this year, but one event today could cause it to drop even more. Soybeans Despite the strong rally in futures today, origination in Brazil was not as important as expected since the real was stronger, offsetting the gains in that currency for farmers. Some traders have initially estimated today’s origination at possibly 300,000 MT. This seems to be a small number and could very well be 0.5-1 MMT.Basis have not yet dropped hard in Brazil since buyers are still waiting for demand to appear. This is basic...
What You Need to Know Today: A third U.S. border crossing (Columbus, New Mexico) has reopened to Mexican cattle imports following nearly two years of restrictions related to New World screwworm. The reopening could gradually improve feeder cattle availability, although more than 60 confi...
Yesterday, the USDA’s Agricultural Marketing Service (AMS) released a new report of negotiated cash purchases of cattle under the mandatory price report. The report included Colorado, New Mexico, Oklahoma, Texas, and Kansas. The goal of the report was to solve the confidentiality issues e...
Key Takeaways: U.S. soybean crushing began in 1911 and saw its most rapid expansion during the 1930s amid the broader agricultural and technology revolutions of the time. After peaking in the early 2000s, the soybean crushing industry went through a downturn as poor crush margins forced...
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.