The state governments in India have taken effective steps over the past few months to control the supplies and costs of pulses in the face of a potentially high deficit, and there have been other resulting economic benefits as well. Lower Lentil/Pulses Prices Good for Domestic Market The state governments in India became strict over the past few months, implementing stock limits on pulses, organizing raids and releasing the confiscated supplies in the market. The fear tactics worked as the wholesale prices of tur (pigeon pea), urad (black lentil) and masoor (red lentil), which are the main pulses, have declined 37.5 percent, 24.62 percent and 33.21 percent, respectively, from their peak in the third week of October 2015. However, retail p...
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.
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...
Inflation is back in the driver’s seat, and agriculture is getting pulled in two directions. A stronger dollar is pressuring grains despite fresh Chinese buying, while renewed Middle East attacks lift crude oil. Higher energy prices can support commodities, but they also raise expenses an...