China’s economic slowdown may have a direct negative impact on the volume of copper or crude oil it imports, but does this have a similar effect on its imports of soybeans?These days, an attempt to analyze what lies ahead for financial or commodity markets in 2016 is bound to refer to China in the first paragraph if not the very first sentence. As it rose to become the world’s second-largest economy during the past decade, China’s growing demand for imported energy and raw materials was one of the main factors that supported the long bull market in commodities. The world came to depend on a Chinese economy in which its gross domestic product (GDP) had increased an average 10 percent annually for nearly 30 years. Thus when China recently ann...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
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.