The CBOT turned mostly lower on Tuesday as the excitement from the bullish WASDE faded. Traders now see the corn and soybean yield and production cuts as fully priced into futures, which left markets to return to trading the South American weather outlooks and export trends. Both of these facto...
Producer price inflation (PPI) ended 2024 up 0.2 percent in December. That is a modest gain and was below pre-report expectations. Nonetheless, the PPI was 3.3 higher than a year ago, and substantially higher than the Federal Reserve’s 2 percent target. That stickiness trend will keep inflation...
Tariff Adjustment/MuskRecognizing the inflation threat of sudden and large import tariffs, Donald Trump’s economic team: Scott Bessent (Treasury), Kevin Hassett (National Economic Council), and Stephen Miran (Council of Economic Advisers) are reportedly working on a plan of more gradual 2-5 per...
Brazil is the second largest producer and use of ethanol after the U.S. The U.S. has an import tariff on ethanol of 2.5 percent ad valorem and has asked Brazil to reciprocate. Brazil maintains an import tariff of 11.75 percent on ethanol. Nonetheless, U.S. exports of ethanol have been on a mete...
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.