The last quarter's GDP growth was the highest since the third quarter of 2015 and more than twice the average rate for this year’s first two quarters. One of the drivers was exports, which was spurred by ag commodities, particularly soybeans.The U.S. Department of Commerce last week released its Advance Estimated of Gross Domestic Product (GDP) for the third quarter of 2016. It indicates the economy grew at an annualized rate of 2.9 percent in the third quarter versus pre-report estimates of 2.5 percent. The actual growth in GDP was the highest since the third quarter of 2015 and is more than twice the average rate for the year’s first two quarters of 1.1 percent.GDP growth is determined by consumption, investment, government spending and n...
Key Takeaways: Dry bulk markets remain mixed with Capesize vessels seeing continued pressure from weaker demand while fixtures and rate strength gradually increases towards the smaller vessel classes. Tanker markets are pulling back from their recent highs as tonnage moves out of the Mid...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
Key Takeaways: Texas illustrates the assumptions underlying the 2025 FMMO reform; Idaho exposes their limitations. The Southwest order blend (roughly 27 percent Class I, 32 percent Class III and 31 percent Class IV) exposes Texas producers to every lever USDA adjusted, with a near-neutral proj...
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.