With the elimination of the export taxes and quantitative restrictions on corn, wheat and sunseed, the incentive to farmers will change substantially. Because it is largely too late for them to make much of a shift in their plantings now, however, most of the impact of the policy changes will occur in future years.As Mike Krueger reported yesterday, Argentine President-elect Mauricio Macri said over the weekend that he will eliminate all export taxes and quotas on corn and wheat as well as beef and sunseed. However, he indicated that the export tax rate for soybeans will be cut by only 5 percent to 30 percent. Farmers have been hoping for and expecting a greater reduction. It is assumed the government will also lower the export tax rate for...
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.