World Perspectives
livestock

Livestock Roundup: China and U.S. Trade Deal, Red Meat Terms Unknown

The biggest news today was the announcement that China will purchase 25 MMT of soybeans per year for the next three years and 12 MMT of soybeans this year. The announcement was made in anticipation of a new trade deal. President Trump and China’s President Xi met for an hour and 45 minutes in Busan, Korea, a meeting declared by Trump, "on a scale from zero to 10, with 10 being the best, I would say the meeting was a 12."   Trump added, “Farmers should immediately go out and buy more land and larger tractors. I would like to thank President Xi for this!” That advice may be premature, and over exaggerated, but it captures the spirit of the coming to terms. The amount of soybean purchases, 25 MMT, is 920 million bus...

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Dec 25 Corn closed at $4.3025/bushel, down $0.0375 from yesterday's close.  Dec 25 Wheat closed at $5.2425/bushel, down $0.08 from yesterday's close.  Jan 26 Soybeans closed at $11.0775/bushel, up $0.1325 from yesterday's close.  Dec 25 Soymeal closed at $315.6/short ton, up $6.9...

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Will China’s Purchase Agreement Move the Soybean Balance Sheet?

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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.

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