Ukraine Blows Up CAP Some are worried about the impact of Ukraine joining the EU and specifically if it becomes part of the Common Agricultural Policy. Ukraine would produce 18 percent of the EU’s wheat and 57 percent of its sunflower seeds. Its production area is relatively huge and could consume a lot of subsidies. One study said it would require so much of the CAP’s resources that the rest of the member states would have to take a 20 percent cut to keep within the overall budget. Others contend that Ukraine joining the CAP would present the opportunity to end legacy policies and rewrite the directive in a more thoughtful way. Either way, farm policy will be a big issue on Ukraine’s accession to the single market. ...
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.