World Perspectives

Inflation Sparks Changes; China Hits Unions

Inflation Sparks Changes Food is one of the four essentials of life and yet politicians often tax it domestically and impose tariffs against its importation. That is until food prices move too high and start to get people real mad. Brazil has announced a 10 percent cut in the import tariff to fight the effects of inflation. India lowered the import tariff on edible oils and Virginia Governor-elect Glenn Youngkin campaigned to eliminate his state’s sales tax on food. Norway is reducing taxes on electricity and other services.  If the inflationary trend continues, policymakers may take additional actions to reduce the taxes and tariffs that exacerbate the situation.  China Hits Unions The Biden Administration is going all o...

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Summary of Futures

Sep 25 Corn closed at $4.0925/bushel, down $0.0225 from yesterday's close.  Sep 25 Wheat closed at $5.3825/bushel, down $0.025 from yesterday's close.  Nov 25 Soybeans closed at $10.27/bushel, up $0.0225 from yesterday's close.  Aug 25 Soymeal closed at $275.8/short ton, up $0.2...

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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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