Regional Updates MEDITERRANEAN/MIDDLE EAST/NORTH AFRICA/AFRICA – MEA REGION Morocco’s soft wheat subsidies are expected to reach $410 million in 2022, more than triple normal levels. This is due to the very poor 2022, drought related, wheat crop and the high level of expensive imported wheat that will be required. Morocco maintains its soft wheat prices at a fixed levels so must absorb all the excess cost of imported wheat over the fixed price. Officials in Morocco say that the drought in the country is the worst in 30 years. Egypt’s Central Bank has announced a new requirement that, beginning on 1 March, import payments will have to be done by letter of credit. At present most grain imports are being done on cash again...
Key Market Insights July is here, and the grain markets already feel like they are shifting gears. With the June USDA reports now behind us, inflation is back in the conversation, and traders are once again turning their attention to three familiar summer drivers: demand, money flow, and weathe...
Key Takeaways: Poultry is the fastest-growing major animal protein, supported by lower production costs, affordability, and broad consumer appeal. Broilers are the most feed-efficient major livestock species, giving chicken a lasting cost advantage over beef and pork. Short production cycles a...
What You Need To Know Today: Ethanol margins continue to run well above year-ago and normal seasonal values, but have slipped in recent weeks on weaker DDGS and ethanol pricing. WPI’s models project a steady decrease in returns to ethanol production following the end of the summer...
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.