U.S. dairy producers demanded this week that the Trump Administration ensure that Canada and Mexico adhere to their commitments for market access under the USMCA. That is a reasonable request, but the dairy market needs to be kept in perspective. U.S. dairy exports have been growing at 4.33 percent per year despite the global market expanding at just a 1.88 percent annual rate. Canadian consumption has been growing slightly faster than global demand, but Mexican consumption grows at a slightly slower rate. The real problem for U.S. dairy is over-production and a flawed incentive system. In terms of trade, the industry has been doing well; it is dairy policy that is flawed. ...
What You Need to Know Today: President Trump claimed the ceasefire between the U.S. and Iran was over, as both sides accused one another of violating the terms of the agreement. Commercial vessels are increasingly steering clear of the Strait of Hormuz as security risks escalate following Iran...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
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.