Aussie Livestock in China In the past few years, China has transitioned from being a non-market to an open market and then a closed market for U.S. ethanol and DDGS. At one point, its demand drove DDGS prices to more than 130 percent of the price of corn. In addition, China became the largest market for ethanol exports last year. Both those opportunities have closed, primarily through the adoption of new tariffs on imports. DDGS demand was highest when China needed the feedstuffs, and ethanoll demand peaked when it began using biofuels without having its own production. Now as the country pursues self-sufficiency in corn, pork and chicken as well as biofuels, the imports that “primed the pump” are now locked out. The same tr...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Key Takeaways: Consumer spending is a key driver of the U.S. economy, and the latest retail sales data indicate that spending remains robust despite inflation. In September, total retail and food service sales rose more than 6 percent year-over-year, with food service spending up 7 percent and...
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...
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.