Macroeconomic Food Prices in July See Biggest Drop Since April 2017 With live hog and pork prices falling to breakeven levels, the overall food inflation rate for the month of July fell by 3.7 percent year-on-year. This marked the second straight month of food prices declining in the aggregate on yearly basis. It also parallels a slowing economy in China, as the second quarter GDP grew at an annualized rate of 7.9 percent, below the consensus estimate of 8.1 percent and down from the initial pandemic recovery of 18.3 percent for the first quarter. Pork prices in July dropped by 4.5 percent from the previous year, while fresh vegetables were down 4 percent. Meanwhile, other staple foodstuffs, which are up from a year ago, continue to see...
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.