India's sugar sector continues to suffer from low prices against the cost of production. Little change is expected unless the government of India (GOI) provides an incentive to boost ethanol production and ensures that the mandated blend rate to gasoline is met. Poor Outlook for Sugar Sector Without Ethanol Production Incentive Farmers want a higher price for their sugarcane as their costs to produce the crop have increased. According to those in Andhra Pradesh, the cost of production is currently $70/MT. If the M S Swaninathan panel recommendation regarding the Minimum Support Price (MSP) is implemented, the payments that farmers receive must be 50 percent over and above the cost of production. That would push sugarcane's State Advisory...
What You Need to Know Today: Chinese purchases of U.S. soybeans continued to accelerate, with USDA reporting another 558 KMT sold to China and 236 KMT to unknown destinations. Combined with sales announced Wednesday and Thursday, the latest purchases bring the three-day total to approximately...
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.