The Agricultural Outlook Report published by China’s Ministry of Agriculture and Rural Affairs established the goal of 88.4 percent self-sufficiency in grain (rice, wheat, corn, and soybeans) by 2032. The agency merges all four crops together because it cannot achieve that level of self-sufficiency in soybeans alone. The current self-sufficiency rate for the four combined is 82 percent. This is because self-sufficiency in rice, corn and wheat is already in the low to mid-90th percentile. Soybeans are the laggard at only 18 percent. China’s average yields for rice, corn and wheat are already above the world average. If China raised its average soybean yield to the world average of 2.99 MT/hectare, it would still only be 24...
What You Need to Know Today: Markets got a surprise with a corn yield of 181.2 bushels/acre in the October WASDE, above the average estimate of 177.6 bushels/acre and up from USDA’s September estimate of 178.5 bushels/acre. Although stronger demand is expected to absorb some of the addit...
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.