Phase One Flaws Headlines surrounding China’s import purchases from the U.S. reflect the challenge of politically motivated purchasing agreements. On the one hand, analysts note that China’s imports of U.S. goods slowed again in May, making it unlikely that it will meet the purchase targets in the Phase One trade agreement. On the other, it is observed that soybeans have rallied this week on Chinese purchases from the U.S. despite South America being cheaper. Larger forward purchases could be coming once the U.S. new crop is harvested and prices become more competitive. Agricultural Supports Critique The OECD issued its 2021 report entitled Agricultural Policy Monitoring and Evaluation and it does not paint a pretty pic...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
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.