Reports are indicating that as part of the trade war remedy, China is offering to boost its importation of U.S.-origin soybeans to 30 MMT, from the current reported level of 20 MMT. The value of the extra tonnage is said to be around $325/MT. Even before the trade war, the U.S. share of China’s soybean import market had fallen from nearly 40 percent five years ago to 26.8 percent in 2018. It sold just 16 percent of the soybeans imported by China during this past marketing year. If actually consummated, it would have significant market impact, which is why some risk has come off as traders position for a deal. But it is a huge gamble. The Chinese say they are not willing to concede on major demands, and President Trump says he...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.