World Perspectives
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Cocoa Canary

Given their inelasticity, staple agricultural commodities are a poor indicator of economic health. However, luxury food items like cocoa may be a better indicator of the world’s recovery from the coronavirus. The December contract was up about 2 percent in today’s trading but remains mired down at contract lows. It initially fell 20.8 percent during the February/March initial stages of the global crisis but dipped further this month on fears of the virus’s durability. By comparison, over that same period corn is down 13.7 percent, SRW is down 4.2 percent and soybeans are down 2.8 percent.  The COVID outbreak and economic recession hit after years of cocoa production increases needed to meet the demands of a richer wo...

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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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