World Perspectives

Global Trade Slowing Down

Global trade is down across the board, but it is not a harbinger of doom and gloom nor an indication that an inevitable recession will befall the world economy.The latest update of U.S. agricultural exports shows that the export value for major bulk ag commodities during October 2015-January 2016 is down by more than twice as much as the decline in volume. Bulk commodity export sales totaled $17.325 billion in that period, down 23 percent from $22.616 billion during October 2014-January 2015. Meanwhile, export volumes have decreased 11 percent to 52.538 MMT in the most recent October-January period from 58.783 MMT a year ago at the same time. Indeed, total U.S. goods and services exports fell overall to their lowest January level since 2011...

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Summary of Futures

Dec 25 Corn closed at $4.37/bushel, up $0.035 from yesterday's close.  Sep 25 Wheat closed at $5.5675/bushel, down $0.0725 from yesterday's close.  Nov 25 Soybeans closed at $10.4925/bushel, up $0.0125 from yesterday's close.  Dec 25 Soymeal closed at $292.2/short ton, up $1.4 fr...

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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.

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