Tomorrow USDA releases a lot of much anticipated data: WASDE projections, quarterly grain stocks, and final annual crop production. Markets will be looking at revised yields, stocks, and acreage details which were murky and uncertain through the spring and fall. For the livestock markets, it will be all about the WASDE export forecasts, as trade is the driver. While, the Japan-U.S. deal is in place, and restores tariff equity with other exporters and was reflected in the December WASDE, it may still be too early for USDA to fully include the China deal (or not), since it’s not actually signed and won’t be until next Wednesday. However, the broiler export forecast does reflect China’s opening of its market. Also, while Mex...
Key Takeaways: Dry bulk markets remain mixed with Capesize vessels seeing continued pressure from weaker demand while fixtures and rate strength gradually increases towards the smaller vessel classes. Tanker markets are pulling back from their recent highs as tonnage moves out of the Mid...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
Key Takeaways: Texas illustrates the assumptions underlying the 2025 FMMO reform; Idaho exposes their limitations. The Southwest order blend (roughly 27 percent Class I, 32 percent Class III and 31 percent Class IV) exposes Texas producers to every lever USDA adjusted, with a near-neutral proj...
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.