Export Tax Update The reduction in export taxes has not yet had the expected impact of boosting farmer sales of grain and soybeans. The main issue is that price transmission has not been fully realized, primarily because exporters oppose the requirement to bring foreign currency into the country within 15 days of declaring an export sale (export permit request), even if the shipment has not been completed. This clause introduces uncertainty and adds costs for exporters, which will ultimately be passed on in prices. An announcement on this matter is expected soon, and the clause could be eliminated, allowing foreign currency to enter the country only after the actual export of products. Wheat In the spot wheat market, prices have improved by...
What You Need to Know Today: Attacks between the U.S. and Iran intensified overnight and the U.S. Central Command reported that the U.S. naval blockade against Iran will begin at 3:00 PM CDT Tuesday. President Trump said the Strait of Hormuz is open to all shipping traffic, except Iran. In an...
Beef packer margins improved to -$172/head last week, up $31 from the prior week as sharply lower fed cattle prices more than offset a seasonal decline in the Choice cutout. The cutout fell to $382/cwt while fed cattle prices dropped to $248/cwt, allowing packers to recover some of the margin c...
Key Takeaways: Aquaculture is becoming increasingly important in meeting global seafood demand, gaining market share as wild-caught fisheries face production limitations. Superior feed conversion efficiency gives aquaculture a competitive advantage over traditional livestock production, with l...
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.