Mexico has been in the commodity news a lot recently, first due to its surge in imports from the U.S. and, this week, due to Trump’s threatened tariffs against the country. Given the importance of the country for U.S. grain and other agricultural exports (not to mention imports) WPI offers the following, brief update of the corn market dynamics faced by our southern neighbor.Mexico’s corn imports have grown significantly over the past 15 years due to a growing population and advances in livestock production. Mexico’s feed use of corn has grown at a 5.4 percent compound annual growth rate (CAGR) since 2010/11 while imports have posted a 7.7 percent CAGR. Since 2020/21, Mexico has imported 94 percent of its corn from the U.S. annually, with t...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
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.