Under the US-Mexico-Canada Agreement (USMCA), Ottawa was to improve management of its dairy import TRQ’s and end Class 6 and 7 dairy pricing disciplines. The U.S. believed these changes would increase U.S. dairy exports to Canada by about a third, or $300 million. However, Canada has not loosened restrictions and they have increased imports from the U.S. by just $16 million or 2.4 percent. The result is that Washington will reportedly soon file a USMCA trade dispute case against Canada. Notable is the back story. The USMCA dairy provisions were pushed by U.S. Dairy Export Council CEO Tom Vilsack, also the former Secretary of USDA. Vilsack was the only Obama Administration Cabinet official to voice public support for his success...
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
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.