USDA released is September WASDE today. Broiler production is expected to increase, based on higher slaughter and heavier weights. Beef, pork and turkey are all down from last month’s estimates based on slaughter pace and lighter weights. But, if you take the quarterly production data, and projected quarterly levels of production to approximate the crop marketing year, total red meat and poultry production, it implies an increase of 1.5 percent in production. That raises and interesting observation. While all the focus regarding the uncertain supply and demand situation for corn has been on USDA’s projection of acres and yields, today’s WASDE also shows feed use of corn down 1.9 percent from the last crop year, which does...
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.