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: Iran has developed an initial draft plan that would prohibit U.S. and Israeli ships from transiting the Strait of Hormuz, increasing concerns over potential disruptions to global energy trade. Although no restrictions have been enacted, the proposal adds anot...
Key Takeaways: Global freight markets are mixed this week with Capesize and Panamax vessel seeing strong performance, primarily on iron ore demand and U.S. Gulf and ECSA grain demand. Handysize and, to a lesser extent, Supramax vessels are trading lower as charterers focus on larger vess...
For years, the EU treated its cows, pigs, and broilers mainly as a source of emissions to be reduced. This week the European Commission gave them a new job title: "critical infrastructure." According to the EU’s official livestock strategy presented in Strasbourg, France, livestock underp...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.