China’s announcement last week that it would not add punitive tariffs on imports of pork from the U.S. was largely a necessary self-restraint. With nearly one third of the domestic herd culled and prices 40 percent higher, China has increased its pork import purchases. Key suppliers are the EU, Canada and Brazil but according to some estimates, China’s pork imports will need to double from 1.1 MMT in 2018 to 4.2 MMT in 2020. The EU, Brazil and other countries can increase production, but the U.S. and Canada are the only countries with readily available surplus stocks of pig meat. The U.S. has 245,000 tons of readily available surplus pork and has the lowest cost of production. Not to say that Beijing couldn’t pay premium...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
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.