Duty on Wheat Imports After raising the 2017/18 Minimum Support Price (MSP) for wheat by 6.8 percent to Rs.17,350 ($266.19)/MT in a signal to farmers, the government of India (GOI) doubled the import duty to 20 percent. Imports had continued even after the 10 percent rate was imposed in March 2017, although at a slower pace. Those shipments were mostly intended for the flour mills in south India, primarily Tamil Nadu, Andhra Pradesh and Karnataka. It is estimated that India produced 98.38 MMT of wheat in 2016/17, and there is hope that the new prices will incentivize farmers to grow more. Per the first advance estimates for 2017/18, the wheat production target is fixed at 97.5 MMT. Meanwhile, traders believe that the boost in the MSP coup...
Key Market Insights Macros: Inflation isn’t cooling — it’s moving higher again. March PCE inflation (Personal Consumption Expenditures index — the Fed’s preferred measure of inflation) rose 0.7 percent month-over-month, pushing the annual rate to 3.5 percent, the h...
An amendment to the U.S. House farm bill, aiming to remove the Save Our Bacon Act language in Section 12006 that would have stripped language to prohibit California’s Proposition 12, Massachusetts’ Question 3, and up to 500 state agricultural laws across the country, was blocked by...
What Matters Today... Fed holds rates steady as inflation uncertainty tied to the Iran conflict pressures equities and supports broader commodity risk premia Biofuel demand accelerating globally, with U.S. imports of used cooking oil and strong soyoil demand reinforcing upside across the soy 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.