It is rare that palm oil trades at a premium to soyoil, but a shortage is resulting in higher prices that are expected to lead to substantial increases in demand for soyoil, sunflower oil and rapeseed oil. Chinese Crushers Band Together to Slow Soybean Imports and Crush Large negative soybean crushing margins resulting from a slowdown in soymeal demand and an overabundance of crushed soybeans have caused several Chinese crushers to all agree to restrain processing in order to improve profitability. Such a coordinated effort by soybean crushers would be illegal in the U.S., but that does not appear to be the case in China since state-owned companies are evidently participating in the effort. The slowdown was announced on Monday by the Chin...
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.