It's difficult to not worry about demand for agricultural commodities when concerned about China's economy. The country has accounted for 65 percent of the world's total soybean exports in the current marketing year.Today's markets (grains, oilseeds, financial, energy, etc.) seemed to be reacting to the overnight meltdown in China's financial market, which was down more than 8 percent and suffered the largest one-day loss since 2007. Despite that, China's market is still up 15 percent for the year but 28 percent off its high. That is quite a ride and almost like soybeans. Now that we have again put Greece on the back burner, it's time to worry about China's growth or lack thereof. Everything took a beating today. Corn and soybeans were shar...
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.