2015 production of grain sorghums, barley and oats is expected to exceed domestic demand by more than 360 million bushels. This illustrates how important exports have become to the combined overall supply/demand outlook for the three grains.When not trying to make sense of the Chinese economic situation and what it might mean, much of the market's attention has been focused on the potential yield and size of the 2015 U.S. corn crop. USDA's first survey-based estimate of a national average yield of 168.8 bushels/acre and production of nearly 13.7 billion bushels in the August WASDE came as quite a bearish surprise even to most private observers. Pre-report private estimates had been lower by 3-4 bushels/acre and about 300 million bushels. In...
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.