World Perspectives

Dissecting China; Tech War and Agriculture; Election and Trade Questions

Dissecting China Asian financial analyst Stewart Paterson presented his new book, China, Trade and Power, at the free trade-focused Center for Strategic and International Studies last week. In the book, he argues that the West was unprepared for the impacts of China’s accession into the WTO and must now employ market-rebalancing mechanisms. Western government motives were noble (political change in China) even if unrealized, while Western multinational corporate goals were a bit more self-serving. For China, the result would be foreign direct investment, acquisition of technological know-how, and export markets. Paterson calls the result the largest labor and regulatory (Chinese pollution) arbitrage in history. It is now hard to ima...

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Summary of Futures

May 26 Corn closed at $4.4575/bushel, down $0.0275 from yesterday's close.  May 26 Wheat closed at $5.7725/bushel, down $0.1425 from yesterday's close.  May 26 Soybeans closed at $11.64/bushel, down $0.0675 from yesterday's close.  May 26 Soymeal closed at $312.9/short ton, down...

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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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