World Perspectives
feed-grains soy-oilseeds wheat

China, China, China

There have been several important news stories from China in recent days, but the one that deserves more chatter suggests the country might be considering important changes to its farm subsidy programs.You can't turn around these days without someone making a fresh observation or prediction about what might or will happen in China and how that will impact commodity agricultural markets. Soybeans carry the most risk of a collapse there because 65 percent of the world's soybean exports now go to China. USDA is forecasting its soybean imports at 79 MMT in MY 2015/16, which is 25 percent of total world production. China is a very big deal in the world oilseeds market. The chart below shows the tremendous growth in its soybean imports. Note that...

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feed-grains soy-oilseeds wheat

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feed-grains soy-oilseeds wheat

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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.

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