Deforestation Proxy It was revealed this week that Brazil is exporting 120 KMT of soybeans to the U.S. and the State Department immediately announced that the Biden Administration will use trade policy to reverse deforestation, including imposing import restrictions on goods where production impacts forests. It could just be coincidence but Washington has been angry that Brazilian President Inácio Lula da Silva has seemingly sided with Russia over Ukraine. While in China, da Silva blamed the U.S. for prolonging the war. The Biden White House accused him of “parroting” Russian propaganda. The enmity extends to Ukraine where President Volodymyr Zelensky intentionally snubbed da Silva at the G-7 meeting. Although Brazil has...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
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.