World Perspectives
livestock

Pork S&D Fundamentals

A reader has pointed out that U.S. pork, a victim in the trade war with China, is priced lower than other suppliers, including less than half the value of EU pig meat. U.S. pig meat prices were actually seasonally lower in 2018 than this year. Moreover, U.S. and Canadian pork prices tend to move closer together and with greater volatility than those in Europe or Brazil. Nonetheless, the large dynamic is the relatively larger pork carryover stocks in the U.S., and the fact that they keep growing. U.S. pork prices are waiting a breakout based on prospective sales to China. Canadian pork sales to China have also been stymied for geopolitical reasons but there is no indication that they will be unleashed as a result of Washington’s pendi...

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Export Sales

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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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