African countries attending a conference this past week in Washington on the African Growth and Opportunity Act (AGOA) pushed back on a U.S. suggestion that they begin to consider transitioning to reciprocal trade policies when the act expires in 2025. Corn Fight A Reuters news report indicates that China may be looking to dump its surplus corn onto the world market. Three state-owned trading companies will sell 2 MMT at below acquisition price, likely into Asian markets typically supplied by Western Hemisphere farmers, plus receive tax rebates. The move comes at the same time Beijing has imposed punitive tariffs on DDGS from the U.S. and Washington has challenged China’s farm subsidies in the WTO. All of this reinforces an EU suggestion...
Key Takeaways: Dry bulk markets remain mixed with Capesize vessels seeing continued pressure from weaker demand while fixtures and rate strength gradually increases towards the smaller vessel classes. Tanker markets are pulling back from their recent highs as tonnage moves out of the Mid...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
Key Takeaways: Texas illustrates the assumptions underlying the 2025 FMMO reform; Idaho exposes their limitations. The Southwest order blend (roughly 27 percent Class I, 32 percent Class III and 31 percent Class IV) exposes Texas producers to every lever USDA adjusted, with a near-neutral proj...
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.