World Perspectives
livestock

Where’d the Pork Originate?

The Wall Street Journal noted that China’s pork production fell 55 percent last year (per Rabobank) and yet U.S. pork prices have fallen as China instead bought pork from Europe and Brazil. But global pork supplies are finite, with neither Europe nor Brazil indicating the presence of surplus carryover stocks for the past few years. The data is anomalous. Over the past two years, global pork production fell by 17.7 MMT while trade only grew by 1.9 MMT, and surplus stocks increased by 7.4 percent. China had its own trade tiff going with Canada, which saw surplus pork stocks grow by 23 percent, whereas U.S. carryover increased by 12.5 percent. So, where did the extra pork to feed China come from? China produces half the world’s po...

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CFTC COT Report Analysis

Once again, the major finding of Friday’s CFTC report is that funds still remain solidly bullish corn and added another 7 percent to their long position in that market. That was particularly impressive as the week ending 19 November (the reporting deadline for the CFTC report) included days wit...

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livestock

Cattle on Feed Report

USDA released the monthly Cattle on Feed report today. Once again, placements surprised to the upside compared to pre-report analysts’ consensus expectations. The total cattle on feed inventory was 11.986 million head, which was slightly above last year’s 11.956 million head. Total feedlot inve...

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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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