The biofuels industry gets a lot of attention for influencing vegetable oil prices but growing human consumption has its role as well. The largest importer for vegetable oils as food is India and its population is reaching par with that of China. In addition to population growth, India is the fastest growing large economy in the world. More people with more income means that India will eventually consume food like the Chinese. However, India has nearly five times as many vegetarians as China and so its dietary composition is different. In lieu of meat, India’s consumers will demand more vegetable oil and plant proteins like peas, lentils, and beans. Right now, the Chinese are consuming nearly 50 percent more vegetable oil...
What You Need to Know Today: The September Cattle on Feed report was strongly bullish, with both the 1 September on-feed inventory and August placements coming in well below average expectations and below the bottom of their respective pre-report estimate ranges. China continues to buy U...
Given yesterday’s headlines, today’s market action may not be what many expected. The dollar is little changed, crude oil is pulling back and stocks are trading higher. Crude may be the biggest piece of today’s reversal. Saudi Arabia is offering additional crude to Asian buyer...
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.