Sorghum is a minor crop, logging in just 5 percent of the global production of its close cousin corn. This is in large part due to its lower yield and more challenging processing. Yet it is more drought tolerant and readier for climate change than many other row crops. The U.S. is its largest producer and exporter, though it is volatile and has been trending downward. Argentina is the crop’s number eight global producer and number two exporter. Despite not even producing amongst the top 10, Australia is the number three sorghum exporter. Most of the top sorghum producers (Africa, India, China) tend to consume what they produce. Sorghum imports bounce around with the supply available. Steadier production and availability might m...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
Yesterday we wrote about the Q1 GDP numbers and the June employment reports in an article entitled Real GDP for Q1 Relying on AI Buildout, Held Back by Consumer Spending. That article mentioned that consumer spending had become a drag on GDP. Nonetheless, real GDP in Q1 was revised upward to 2...
Key Takeaways: The Middle East and North Africa's arid climate and limited water resources have created a structural dependence on imported wheat. Government wheat tenders in major importing countries serve as important benchmarks for global trade, providing insight into exporter competitivene...
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.