Markets are volatile due to the large number of economic cross-currents. The WTO unsurprisingly announced that global trade would decline in 2023. The combination of rising interest rates, inflating prices, energy shortages and reshoring efforts add to the burdens. OPEC+ will cut oil production by 2 billion barrels/day just as Europe tries to wean itself off of Russian gas. Some say the current combination of factors will lead to stagflation. Now the White House is said to be considering an export ban on gasoline. This will prove more globally controversial than its push for tax credits limited to domestic EV output. Domestically, it will lower gasoline prices but concurrently reduce the incentive for production. Longer term, refiner invest...
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.